Polymarket has removed a marketplace linked to the fate of a missing U.S. soldier after mounting backlash, saying the post violated its “standards of integrity.”
Controversy erupted after the forecast market questioned whether US authorities would confirm the rescue of a pilot reportedly shot down over Iran, with the majority of users (over 60%) betting that he would not be rescued until Saturday.
U.S. Representative Seth Moulton convicted market, calling it “disgusting” and expressing concern about people speculating about the fate of the potentially injured service member. “It could be your neighbor, a friend, a family member. And people are betting on whether they will get saved or not,” Moulton wrote.
In response to Polymarket he said immediately withdrew from the market, adding that it should not have been listed on the stock exchange and that the company was investigating how it passed internal safeguards. The platform did not provide further details on what specific regulation was violated.
Related: Polymarket expands into stocks and commodities with Pyth price feeds
Polymarket under regulatory control
Although Polymarket said it caused the market to fail because it did not meet its fairness standards, the platform did not specify which rule was violated, prompting further scrutiny by users.
“I look at the Market Integrity page, checked the TOS, and I don’t see which ban applies here” – Jack Newsham, national correspondent for Business Insider, he wrote on X
As Cointelegraph reports, Polymarket saw fees and revenue skyrocket after expanding its fee model on March 30, with daily fees increasing from approximately $363,000 to over $1 million and revenue peaking at $1 million. The enhance is due to broader taker fees in categories such as finance, politics and technology as the platform increases monetization.
Related: Crypto VC Paradigm is developing a prediction market terminal: Fortune
Insider trading concerns are growing in prediction markets
There are also growing concerns about insider trading in prediction markets. Last month, it was reported that a group of traders made about $1 million by correctly betting on the timing of U.S. attacks on Iran, with some placing trades hours before the attacks. The activity, which involved newly created portfolios focused almost exclusively on strike-related bets, raised suspicions of insider trading.
To address these concerns, at least 42 Democratic lawmakers called on the U.S. Commodity Futures Trading Commission and the Office of Government Ethics to warn federal employees against using nonpublic information to trade forecast markets.
Big questions: Is China hoarding gold to make the yuan a global reserve instead of the dollar?