According to a New York Times investigative report, several senior CFTC officials who raised regulatory concerns about Polymarket, Crypto.com, and Gemini, companies with business ties to the Trump family, have been suspended, placed under internal investigation, and forced to resign. The report states that then-CFTC Acting Chair Caroline Pham and her senior advisors intervened to help these companies obtain necessary approvals. In late 2025, five officials who raised questions or enforced crypto regulations were placed on administrative leave and placed under internal investigation without being given specific reasons. After leaving CFTC, Pham joined MoonPay, a crypto company that partnered with Polymarket, while her senior advisor, Brigitte Weyls, became general counsel for Gemini Titan, whose application was approved with her involvement. On the enforcement front, the CFTC has withdrawn at least five crypto investigations, and the number of enforcement actions has plummeted from over 80 during Biden's presidency to only two during Trump's term. A White House spokesperson denied any conflict of interest, stating that President Trump would only act in the best interests of the American public.

According to Odaily Planet Daily, several senior officials at the U.S. Commodity Futures Trading Commission (CFTC) who raised compliance concerns about prediction market platforms were subsequently suspended, subjected to internal investigations, and ultimately forced to resign. The report states that these officials raised concerns about the following companies: Polymarket lacked adequate anti-fraud mechanisms; Crypto.com did not treat small-stakes users fairly; and Gemini's affiliated companies had not completed necessary regulatory reviews. The investigation indicated that all of these companies were believed to have business ties to the Trump family. Sources say that then-acting CFTC Chair Caroline Pham and her senior advisors intervened to help these companies obtain regulatory approval. By the end of 2025, two officials who raised concerns were administratively suspended and placed under internal investigation, and three other officials responsible for crypto enforcement faced similar treatment, without being given specific reasons. The report states that this created a "don't create trouble for the industry" signal within the CFTC. The CFTC significantly reduced its crypto enforcement efforts during the Trump era: during Biden's term, the agency initiated over 80 crypto enforcement actions, while during Trump's term, it initiated only two, both targeting individual operators rather than large corporations. In addition, Caroline Pham joined MoonPay, which has a partnership with Polymarket, after leaving the company; her former senior advisor, Brigitte Weyls, joined Gemini Titan as general counsel. Current CFTC Chairman Michael Selig has also previously served as corporate lawyer for several crypto companies. (Cointelegraph)

According to Huoxun Finance, a representative from the prediction market platform Polymarket stated that the security incident was caused by the leakage of an internal recharge configuration private key that had been in use for six years, resulting in some funds flowing to related addresses. The team has now completed private key rotation, reclaimed all production environment access, and will subsequently migrate all private keys to a Key Management Service (KMS), abandoning the traditional storage method. The platform and UMA contracts were not attacked, user funds are safe, and operations are unaffected.

According to Odaily Planet Daily, Josh, VP of Engineering and DeFi at prediction market Polymarket, stated in an article on the X platform that the security incident stemmed from the leakage of a 6-year-old private key. This private key was used for internal top-up configuration, which explains why some funds were sent to that address. Josh added that the Polymarket team has completed private key rotation, revoked all production environment permissions, and plans to migrate all private keys to a Key Management Service (KMS) instead of continuing to store them in the traditional way. Furthermore, Polymarket and its UMA contracts were not compromised, all user funds are safe, and the platform is functioning normally.

Odaily Planet Daily reports that Kalshi and Polymarket have lost a case to block gambling-related lawsuits brought against them by Nevada and Washington states. A panel of the U.S. Ninth Circuit Court of Appeals stated that federal derivatives regulation does not automatically protect prediction market platforms from enforcement of state gambling laws. The appeals court rejected the companies' request to halt the transfer of the dispute back to state courts, stating that Kalshi and Polymarket failed to prove their claim that the case fell under federal jurisdiction. This ruling exacerbates the legal debate over whether sports event contracts offered by prediction market companies are federally regulated derivatives or illegal gambling products under state law. (financefeeds)

According to Huoxun Finance, the U.S. House Oversight Committee plans to investigate prediction market platforms, raising concerns that U.S. government employees may use insider information to profit from policy and national security events. Committee Chairman James Comer, a Republican representative from Kentucky, stated that the committee is reviewing internal records of the CEOs of Polymarket and Kalshi to examine whether government employees used insider information to profit from policy, geopolitical, and military operations. This could potentially push for legislation to prohibit members of Congress and government officials from participating in prediction markets. The prediction market is currently experiencing rapid growth, and both parties in Congress are increasing scrutiny of it, with allegations of national security risks, insider trading, and gambling-related issues.

Odaily Planet Daily reports that the U.S. Ninth Circuit Court of Appeals rejected Kalshi and Polymarket's request to allow Nevada and Washington states to proceed with their gambling-related cases against the two prediction market platforms, remanding the cases to state courts. The court held that the two companies failed to demonstrate that the cases should fall under federal jurisdiction. The platforms' claim of priority under the Commodity Exchange Act alone is insufficient to automatically establish federal jurisdiction. Kalshi and Polymarket had previously argued that contracts for sports, political, and other events are federally regulated derivatives under the CFTC, and that state governments have no jurisdiction under gambling laws. However, Nevada and Washington argued that such contracts constitute unlicensed gambling products. This ruling shows that the disagreement among U.S. courts regarding whether prediction markets fall under federally regulated swaps or illegal gambling products under state law is widening.

According to Huoxun Finance, the dispute between the US federal government and several states over the regulatory authority for prediction markets continues, with prediction market platforms such as Kalshi, Polymarket, Robinhood, and Coinbase continuing to increase their investment in the business. Currently, 17 states have challenged these platforms, with some arguing that sports event contracts constitute betting and should be regulated at the state level; the Commodity Futures Trading Commission (CFTC) maintains that event contracts are derivatives and subject to federal regulation. Congress has also intervened, with House Oversight and Government Reform Committee Chairman James Comer demanding that Kalshi and Polymarket submit documents related to their insider trading prevention mechanisms. Despite the uncertainty of the regulatory environment, the valuations of these platforms continue to climb: Kalshi's valuation reached $22 billion after its latest funding round, more than doubling from $11 billion in December of last year; Polymarket's valuation rose to $15 billion. Executives from companies such as Flutter Entertainment, DraftKings, and Robinhood have all stated they will continue to invest in prediction market businesses, believing that the related regulatory disputes will continue to evolve in the coming years.

According to Huoxun Finance, a U.S. federal appeals court ruled that enforcement lawsuits filed by Nevada and Washington states against prediction market platforms Kalshi and Polymarket can continue in state courts, rejecting the companies' requests to suspend the cases during their appeals. The court held that the two companies failed to demonstrate that the state court proceedings would cause irreparable harm, nor did they demonstrate a high probability of success for their claims of federal jurisdiction.

According to Huoxun Finance, Josh Stevens, VP of Engineering at Polymarket, disclosed that with the assistance of ZachXBT, BitcoinVN, and ChangeNOW, $164,000 in funds related to the Polymarket private key breach has been frozen, representing approximately 28.6% of the total transferred amount of $573,200. Josh stated that the incident did not affect Polymarket or the UMA smart contract, user funds are safe, and the platform is operating normally. The investigation revealed that the incident stemmed from the leakage of a private key that had existed for approximately six years. This private key was used for internal recharge configuration, causing funds to be continuously sent to affected addresses. The team is currently continuing to track the remaining stolen funds.

According to a recent exchange report released by CoinDesk, Gate continues to maintain its leading position globally in both the spot and derivatives markets. In April, Gate's spot trading volume reached $39.3 billion, and its contract trading volume reached $350 billion, ranking fourth globally in total spot and derivatives trading volume. Simultaneously, Gate also ranked fourth globally among derivatives exchanges, with a market share of 9.86%, consistently maintaining its position among the world's leading trading platforms. The report points out that although overall derivatives market trading activity has declined somewhat, centralized exchanges saw a 16.9% increase in open interest in April, reaching $105 billion, a new high since February of this year. Gate ranks among the top four global retail trading platforms in terms of open interest, with a market share of 9.45%, reflecting the platform's continued advantage in liquidity depth, trading activity, and competitiveness in the derivatives market. In addition to trading, the CoinDesk report also highlights several advancements Gate has made in product and ecosystem development. Gate has become the first centralized trading platform to integrate with Polymarket, allowing users to directly participate in prediction market trading using USDT through the Gate App. Currently, Gate has built a systematic capability framework around the integration of AI and Web3, gradually forming an AI ecosystem consisting of Gate.AI, Gate for AI Agent, GateRouter, and GateClaw, accelerating its transformation into a crucial entry point for next-generation AI and on-chain interaction.

According to Huoxun Finance, James Comer, Chairman of the U.S. House Oversight and Government Reform Committee, has launched an investigation into prediction market platforms Kalshi and Polymarket, demanding that both companies explain their insider trading prevention measures, including identity verification, enforcement of geographic restrictions, and mechanisms for monitoring unusual transactions. Comer stated that internal records are crucial for identifying improper traders and determining whether a platform is fulfilling its legal obligations. Polymarket was previously exposed for suspicious transactions related to U.S.-related events in Iran and Venezuela, and Kalshi also suspended the accounts of three congressional candidates who had bet on their own elections on the platform. Comer has requested both companies to submit relevant documents by June 5th.

Odaily Planet Daily reports that James Comer, chairman of the U.S. House Oversight and Reform Committee, has launched an investigation into prediction market platforms Kalshi and Polymarket, sending letters to the CEOs of both companies requesting internal documents regarding measures to prevent insider trading, identity verification, geographic restrictions, and monitoring of unusual transactions. Comer stated that internal records are the only way to identify accounts suspected of profiting from national security secrets, including those belonging to military personnel and those with security clearances. The investigation will focus on transactions related to election results, U.S. military actions against Iran, and Venezuela. Previously, a U.S. soldier was arrested for profiting approximately $400,000 from Polymarket using intelligence related to regime change in Venezuela, and more than 80 users were reported to have placed orders hours before the U.S.-Israeli airstrikes against Iran. (CNBC)

Huoxun Finance reports that Shantikiran Chanal, a Polymarket employee, posted on the X platform that he is aware of the security reports related to reward distribution, and that user funds and market settlements are secure. The investigation indicates that the issue stemmed from a leak of the private key of an internal operating wallet, not a problem with the contract or core infrastructure. Further updates will be released later. Previously, ZachXBT reported that the Polymarket UMA CTF Adapter contract was suspected of being attacked on Polygon, resulting in the leakage of over $520,000.

Odaily Planet Daily reports that Shantikiran Chanal, a Polymarket staff member, posted on the X platform that he is aware of security reports related to reward distribution, and that user funds and market settlements are secure. The investigation points to a private key leak in an internally used wallet, not a contract or core infrastructure issue. Further updates will be released later. Previous report: ZachXBT claimed that the Polymarket UMA CTF Adapter contract was suspected of being attacked on Polygon, with over $520,000 already lost.

According to Huoxun Finance, blockchain detective ZachXBT revealed that Polymarket's UMA CTF adapter contract was suspected of being attacked on the Polygon chain, with over $520,000 stolen so far.

According to ZachXBT, the Polymarket UMA CTF Adapter contract appears to have been attacked on Polygon, with over $520,000 already leaked.

According to sources familiar with the matter, prediction market platform Polymarket has established a representative office in Japan and is lobbying for the legalization of its prediction market business there. The specific plans have not yet been made public. Polymarket aims to obtain approval from the Japanese government by 2030, believing Japan to be a market with significant untapped potential.

Odaily Planet Daily reports that prediction market platform Polymarket is seeking approval from the Japanese government and plans to operate its prediction market business in Japan by 2030. It has already appointed local representatives to lobby for approval. The report states that Polymarket considers Japan an important, yet underdeveloped market. Due to Japan's strict regulations on gambling, Polymarket currently blocks Japanese users from participating in prediction market transactions. Under Japanese criminal law, habitual gambling can be punished with up to three years in prison, while operating a gambling business can be punished with up to five years in prison. A Polymarket spokesperson stated that the company has observed "substantial natural interest" from users in Japan and other Asian regions and continues to evaluate opportunities to expand global market access in a compliant manner. (Bloomberg)

Odaily reports that the Korea Communications Standards Commission (KSC) is investigating whether the prediction market platform Polymarket is involved in illegal predictions. The report states that the agency has formally launched an investigation to assess whether the Polymarket platform constitutes gambling or violates relevant South Korean laws. This is yet another instance of regulatory pressure facing Polymarket recently. (Bloomberg)