South Korean Police Refer 18 Polymarket Users to Prosecutors in Gambling Probe
18 users face prosecution after police investigation
South Korean police have referred 18 Polymarket users to prosecutors as part of an illegal gambling investigation. The probe involves a total of 26 people who collectively wagered about 17.6 billion won, worth roughly $12.7 million, on the prediction market platform.
The data was submitted by South Korea's National Police Agency to the office of Democratic Party lawmaker Yoon Kun-young. According to a report by Asia Economy, the Gangwon Provincial Police Agency placed the 26 individuals under investigation as of Tuesday.
Key numbers from the investigation
- 26 people placed under investigation
- 18 of them referred to prosecutors
- Total wagers of about 17.6 billion won ($12.7 million)
- The largest single user wagered approximately 5.7 billion won ($4.1 million)
How police identified users
Police reportedly identified the users by analyzing publicly available blockchain transactions. Polymarket operates as a noncustodial, peer-to-peer platform with automated settlement. The report noted that the platform does not maintain a conventional list of users linked to their real names.
Polymarket is a prediction market where people can buy and sell contracts tied to the outcomes of real-world events, such as elections or sports results.
The legal dispute over how to classify Polymarket
Authorities argue that Polymarket transactions are illegal gambling under South Korea's Criminal Act. They say users stake assets on outcomes that cannot be predicted with certainty.
The users involved have pushed back. They argue that Polymarket should be treated as a crypto-based derivatives investment market rather than a gambling platform.
Tae-Lim Kim, managing attorney at AXIS Law, told Asia Economy that the transactions could meet the legal requirements for gambling. He said calling them prediction derivatives would be difficult to use as a direct defense in criminal proceedings. However, he noted that the ability to trade contracts and exit positions before settlement could be relevant to a court's assessment.
South Korea's broader crackdown on Polymarket
This investigation is part of a wider effort by South Korean authorities against the platform.
- In June, Gangwon police launched South Korea's first illegal gambling probe into local Polymarket users at the request of the National Police Agency.
- On August 18, South Korean authorities moved to block access to Polymarket in the country. The media and communications review commission said the platform's winner-takes-all structure encouraged speculative gambling.
Polymarket argued in its defense that it did not provide Korean-language services, did not support payments in Korean won, and that its noncustodial setup meant it did not directly manage user funds. The commission rejected these arguments, stating that technical characteristics do not exempt a service from South Korean law.
