Korean Police Trace Polymarket Users via Blockchain Analysis
- Gangwon Provincial Police began investigating Polymarket users in March, booking suspects by May.
- By September, police booked 26 individuals, referring 18 to prosecutors for suspected gambling.
- The total staked amount reached $12.7 million, with the largest single trader staking $4.1 million.
- Police identified traders using public blockchain transaction records due to the absence of a real-name roster.
- Korea’s broadcasting body ordered Polymarket blocked on August 18, citing illegal gambling concerns.
The investigation into Polymarket users highlights Korea’s novel approach of targeting players rather than operators in cases of suspected illegal gambling involving cryptocurrency markets. Despite Polymarket’s argument that it does not operate as a gambling venue, authorities proceeded with charges based on the platform’s structure and user activities before the official block order.
This case underscores the complexities surrounding DeFi platforms and their classification under existing legal frameworks, as seen by the significant sums involved and ongoing scrutiny from global regulators.Source
