Polymarket struck a multimillion-dollar promotional deal with streamer Adin Ross, according to a Wall Street Journal investigation. Ross, who has a multimillion-follower count, averages about half an hour per week on his livestream scrolling through the platform and commenting on potential trades, according to a person familiar with the negotiations cited by the Journal. The arrangement is drawing scrutiny as the WSJ found that in at least five of Ross's videos, he identified ways to use inside information to trade on the platform, and Polymarket promoted at least 19 videos discussing inside information or market-manipulation tactics. The promotional campaign comes as Polymarket works to bring its exchange back onshore in the U.S. after a 2022 CFTC settlement and faces ongoing regulatory and reputational challenges over insider-trading concerns.
WSJ Investigation Finds Inside-Information Discussion in Promoted Videos
The Wall Street Journal reported that Polymarket and its marketing contractor, Virality, targeted dozens of Ross's videos for promotion. In at least five of those videos, Ross identified ways he could use inside information to trade on the platform, according to the newspaper. More broadly, the Journal found Polymarket paid clippers to push at least 19 videos that walked through using inside information or other ways to game markets.
Ross's videos were part of a larger paid-creator campaign run through Virality that leaned heavily on fabricated trades filmed on near-perfect copies of Polymarket's site, the Journal found. Pierre Lindh, co-founder of iGaming media group Next.io, called insider trading the hardest problem prediction markets face, arguing that a neutral operator collects its fee no matter who wins and so lacks the incentives of a sportsbook to stamp it out.
Polymarket Formalizes Market-Integrity Rules in March and Adds Chainalysis Partnership in April
Polymarket told the Journal it prohibits trading based on stolen information, illegal tips, or information obtained in breach of a duty of trust or confidentiality, and pointed to a market-integrity framework covering monitoring, on-chain transparency and escalation to regulators. The company formalized those rules in March and added a Chainalysis surveillance partnership in late April.
Polymarket told the Journal it is committed to maintaining accurate, fair, and transparent markets and that it would conduct a comprehensive audit of its active promotional content.
DOJ Charges Master Sgt. Van Dyke with Insider Trading on Polymarket in April
In April, the Justice Department charged Master Sgt. Gannon Ken Van Dyke with using classified information to win more than $400,000 on Polymarket contracts tied to the U.S. operation that captured Nicolás Maduro. The case marks the first federal prosecution of insider trading on a prediction market. Van Dyke pleaded not guilty on April 28 and is scheduled to stand trial in December.
Ross Faces Class-Action Litigation Over Stake.us Gambling Promotion
Ross is a defendant in class-action litigation over allegedly deceptive gambling promotion tied to the casino platform Stake.us, including a federal RICO complaint filed in Virginia in December. Representatives for Ross and Drake declined to comment to the Journal.
POLITICO Investigation Reveals CMO Paid Influencers via Personal PayPal
A separate POLITICO investigation found Polymarket's chief marketing officer paid more than two dozen influencers at least $350,000 to talk up Polymarket on X, most without disclosing the arrangement. The CMO used personal PayPal accounts to make the payments, according to the report.
FAQ
What did the Wall Street Journal find about Polymarket's promotional deal with Adin Ross?
The Wall Street Journal reported that Polymarket has a multimillion-dollar promotional deal with streamer Adin Ross, according to a person familiar with the negotiations. The investigation found that in at least five of Ross's videos, he identified ways to use inside information to trade on the platform, and Polymarket promoted at least 19 videos discussing inside information or market-manipulation tactics.
When did Polymarket formalize its market-integrity rules?
Polymarket formalized its market-integrity rules in March and added a Chainalysis surveillance partnership in late April. The company told the Wall Street Journal it prohibits trading based on stolen information, illegal tips, or information obtained in breach of a duty of trust or confidentiality.
What charges did the DOJ file against Master Sgt. Gannon Ken Van Dyke?
In April, the Justice Department charged Master Sgt. Gannon Ken Van Dyke with using classified information to win more than $400,000 on Polymarket contracts tied to the U.S. operation that captured Nicolás Maduro. Van Dyke pleaded not guilty on April 28 and is scheduled to stand trial in December.
