Polymarket is facing fresh backlash after a POLITICO investigation revealed the prediction market platform funneled at least $350,000 to social media influencers over a 14-month period, while many of those creators posted about the platform on X without any clear "paid partnership" disclosure.
CMO's Personal PayPal Used for Payments
According to POLITICO, Polymarket's chief marketing officer Matthew Modabber sent the payments through his personal PayPal account between January 2025 and February 2026. In total, he transferred more than $2.5 million to over 800 individuals. Reporters identified at least 20 influencers who later posted about Polymarket hundreds of times on social media. Among the recipients were conservative commentator Alex LoRusso, political pundit Brian Krassenstein, former collegiate swimmer and Fox News contributor Riley Gaines, and several other online personalities with large followings across the political spectrum.
The report counted more than 490 posts mentioning Polymarket from paid creators during the review period, none of which disclosed a financial relationship. US Federal Trade Commission guidelines require influencers to disclose material connections when endorsing products. Former FTC deputy general counsel Robin Moore told POLITICO that the described activity appears to be the kind of arrangement that generally should be disclosed.
Coordinated Campaigns and Suggested Posts
POLITICO's review found that several creators promoted major Polymarket developments shortly after receiving payments. Following the February 2025 launch of a "Department of Government Efficiency" dashboard, influencer Eric Daugherty described it as a breaking development. Riley Gaines and media personality Elijah Schaffer also published supportive posts. In June, after Polymarket announced a partnership with Elon Musk’s AI company xAI, multiple paid influencers posted within hours of each other.
One influencer who spoke anonymously said Polymarket occasionally supplied suggested posts and directed creators toward specific markets or announcements. Separately, Shane Ginsberg, founder of social media marketing firm Street Poller, reportedly received at least $77,000 from Modabber. Ginsberg’s network produced man-on-the-street videos promoting Polymarket during the run-up to the 2024 US presidential election, often displaying Polymarket branding even when the platform wasn’t directly mentioned.
Regulatory Heat Mounts in Multiple Jurisdictions
The marketing controversy lands amid intensifying legal and regulatory scrutiny for Polymarket. In South Korea, the Gangwon Provincial Police Agency has opened what appears to be the country’s first investigation into domestic Polymarket users, examining whether participation violates local gambling laws.
In the US, the Department of Justice in May charged Google software engineer Michele Spagnuolo with commodities fraud, wire fraud, and money laundering for allegedly using confidential information to profit about $1.2 million from Polymarket prediction contracts related to Google’s search rankings. The Commodity Futures Trading Commission filed a parallel civil complaint, with Enforcement Director David Miller reiterating that insider trading rules apply to prediction markets.
Polymarket’s market resolution process also drew criticism. A recent market asking whether Strategy would sell Bitcoin before May 31 settled as "No" after a UMA review, despite a regulatory filing showing Strategy sold 32 Bitcoin during the final week of May. Traders complained about the outcome, reigniting debate over how prediction markets should handle disputed results.