Polymarket Pulls Missing US Pilot Market, Faces Questions Over Rules

In response, Polymarket said it had taken the market down immediately, adding that it should not have been listed and that the company is reviewing how it passed internal safeguards. The platform did not provide further detail on what specific rule had been breached.

Polymarket under scrutiny over rules

While Polymarket said it took the market down because it did not meet its integrity standards, the platform did not specify which rule had been violated, prompting further scrutiny from users.

“I‘m looking at the ”Market Integrity“ page, and I checked the TOS, and I don’t see which prohibition is relevant here,” Jack Newsham, a correspondent on Business Insiders national desk, wrote on X.

As Cointelegraph reported, Polymarket has seen a sharp rise in fees and revenue after expanding its fee model on March 30, with daily fees jumping from about $363,000 to over $1 million and revenue nearing $1 million at its peak. The increase follows broader taker fees across categories like finance, politics and tech, as the platform ramps up monetization.

Insider trading concerns rise on prediction markets

There have also been growing concerns about insider trading on prediction markets. Last month, it was reported that a group of traders made about $1 million by correctly betting on the timing of US strikes on Iran, with some placing trades just hours before the attacks. The activity, which involved newly created wallets focused almost entirely on strike-related bets, raised insider trading suspicions.

To address these concerns, at least 42 Democratic lawmakers have urged the US Commodity Futures Trading Commission and the Office of Government Ethics to warn federal employees against using non-public information to trade on prediction markets.