South Korean police book Polymarket users for illegal gambling

South Korean police have booked 26 individuals on suspicion of illegal gambling related to the prediction market platform Polymarket. According to reports, the Gangwon Provincial Police Agency’s cyber investigation unit identified the users by analyzing public blockchain transaction records using open-source intelligence (OSINT) techniques.

As of September 15, 18 of the 26 individuals have been referred to prosecutors. The total amount staked by those booked is approximately 17.6 billion won (roughly $12.7 million), with the largest single trader accounting for about 5.7 billion won. The investigation took place while the platform was still legally accessible in South Korea; the Korea Communications Standards Commission only ordered a domestic block on Polymarket on August 18.

Authorities determined that the transactions met the requirements for gambling under Article 246 of the Korean Criminal Act, as users wagered cryptocurrency on uncertain outcomes. Conversely, the users have argued that Polymarket should be viewed as a derivative investment market based on crypto-assets rather than a gambling platform.