Polymarket users referred to prosecutors in South Korea: Report
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
South Korean police have referred 18 Polymarket users to prosecutors as part of an illegal gambling investigation involving 26 individuals who collectively wagered approximately 17.6 billion won ($12.7 million). Authorities view Polymarket's prediction market transactions as illegal gambling under South Korea’s Criminal Act, while the users claim the platform operates as a crypto-based derivatives market. Polymarket operates a noncustodial, peer-to-peer market for real-world event contracts and does not maintain user identities by real names.
Why it matters
The source implies this development marks South Korea’s first illegal gambling probe involving Polymarket users and has led to blocking access to Polymarket in the country. It highlights regulatory scrutiny on crypto prediction markets and raises questions about how they fit into gambling and financial laws in South Korea.
Key context
The Gangwon Provincial Police Agency launched the investigation in June and moved to block Polymarket in August, citing the platform’s winner-takes-all structure as encouraging speculative gambling. Authorities identified users through blockchain analysis despite Polymarket’s noncustodial structure. Polymarket argued it does not offer Korean-language services or manage user funds directly, but the media and communications review commission rejected these defenses.
Key numbers and entities
South Korean police, Gangwon Provincial Police Agency, National Police Agency, Democratic Party lawmaker Yoon Kun-young, Polymarket, and the media and communications review commission are involved. The total wagered amount is about 17.6 billion won ($12.7 million), with the largest single user bet at 5.7 billion won ($4.1 million). Tae-Lim Kim, managing attorney at AXIS Law, is quoted regarding legal assessments.
What remains unclear
The source does not clarify the specific legal consequences for the referred users or next procedural steps. It also does not detail how South Korean courts will ultimately classify Polymarket’s contracts or the broader regulatory framework for similar platforms.