Three cases involving Taiwan residents who allegedly used prediction market platform Polymarket to bet on local elections have surfaced within a week, with prosecutors and courts taking different actions in Kaohsiung, Nantou, and Tainan.
All three cases were investigated under Article 103-1 of Taiwan’s Public Officials Election and Recall Act, which covers online election gambling. The report said investigators used crypto fund flow analysis in all three matters. In the Nantou and Kaohsiung cases, the bets involved USDC, a U.S. dollar-pegged stablecoin worth about $1 per token. In the Nantou and Tainan cases, authorities said they identified the bettors through tracing the fund flows. In the Kaohsiung case, the indictment also listed a fund flow analysis report as evidence.
Nantou case: 53-year-old woman searched and released on NT$30,000 bail
The Nantou District Prosecutors Office said prosecutor Wu Hui-wen directed the Criminal Investigation Corps of the Hsinchu County Police Bureau in the case. The suspect, a 53-year-old woman surnamed Bai from Nantou County, allegedly accessed Polymarket online and placed bets in the market titled 「2026 Taiwan local elections: winning heads of counties and cities by region」.
According to the report, Bai placed bets on races in several counties and cities, focusing on closely contested areas. Her total stake was about $800, or roughly NT$26,000. After tracing the crypto flows, investigators searched her residence on Oct. 1 with a warrant, seized a mobile phone and a computer, and brought her in for questioning. Prosecutors later allowed her release on NT$30,000 bail. The case remains under investigation.
The Nantou District Prosecutors Office said these new forms of election betting can 「manipulate odds, create false momentum, and distort voter intention」, and urged the public not to place such bets.
Tainan case: Taipei mayor market bet leads to deferred prosecution
The Tainan District Prosecutors Office also issued a press release on Oct. 2, disclosing a case involving a resident surnamed Kuo. The case was handled by Chief Prosecutor Huang Shu-yu and prosecutor Chen Kun-chih, who directed the Criminal Investigation Corps of the Tainan City Police Department.
Kuo allegedly bet in the same 「winning heads of counties and cities by region」 market, with the specific contract tied to whether a named candidate would win the next Taipei mayoral race. Prosecutors said they also found Kuo through crypto fund flow analysis. Kuo admitted the offense and returned illicit gains during the investigation.
On Sept. 29, prosecutors concluded the investigation and granted deferred prosecution, ordering Kuo to pay NT$100,000 to the public treasury. The report noted that deferred prosecution means prosecutors suspend indictment for the time being. If the defendant complies with the conditions during the deferred prosecution period and the decision is not revoked, the person generally will not be prosecuted after the period ends. The NT$100,000 payment is a condition attached to deferred prosecution and is separate from the returned illicit gains. The press release did not disclose the amount of those gains or the length of the deferred prosecution period.
Kaohsiung case: NT$102 in net profit, 30 days of detention
The Kaohsiung case is the only one of the three that has already reached judgment. According to the indictment attached to the Ciaotou District Court ruling, a man surnamed Lin transferred NT$295,000 from his bank account in three transactions between April 7 and April 9. He moved the funds to MAX Exchange, bought 9,245.01 USDC, and then sent those tokens to his Polymarket account.
The indictment said Lin used NordVPN to appear as if he were logging in from a Japanese IP address. Between April 12 and April 14, he placed nine bets in the market asking which political party would win the most seats. His total stake came to 742.96 USDC, equal to about NT$23,500. On April 15, he sold the full position and received 746.49 USDC back. Based on the indictment’s conversion, his net profit was about NT$102.
On Aug. 26, the Ciaotou District Court issued a summary judgment sentencing Lin to 30 days of detention. The report said the sentence can be commuted to a fine at NT$1,000 per day, for a total of NT$30,000. The 746.49 USDC returned after the sale was also ordered confiscated, meaning both principal and profit would be lost.
Legal basis and other disclosed cases
The report said Article 103-1 of the Public Officials Election and Recall Act provides that gambling with property on the outcome of an election or recall can bring up to six months of imprisonment, detention, or a fine of up to NT$100,000. The same applies when bets are placed through telecommunications equipment or the internet. For-for profit group gambling can carry a sentence of up to five years, according to the report.
The story also noted that penalties differ by case. In Tainan, Kuo received deferred prosecution and was ordered to pay NT$100,000 to the treasury. It also said four people in Taoyuan all received deferred prosecution, while Lin in Kaohsiung was sentenced to 30 days of detention and had the related USDC confiscated.
Cases emerged less than two months before voting
Taiwan’s local elections are set for Nov. 28. With less than two months left before the vote at the time of publication, three cases involving Polymarket election betting had already been publicly disclosed within a single week, pointing to active enforcement against online election wagering tied to crypto transactions.