Prediction market platform Polymarket removed a market tied to the fate of a missing U.S. service member after widespread criticism, saying the listing violated its “integrity standards.” The disputed market asked whether U.S. authorities would confirm the rescue of a pilot reportedly shot down over Iran; more than 60% of bettors had wagered that a rescue would not be confirmed by the stated deadline.
Representative Seth Moulton condemned the market as “disgusting,” saying it was inappropriate to let people speculate on the possible condition of an injured service member. Polymarket said it took the market down immediately, acknowledged the listing should not have been live, and is reviewing how it passed internal safeguards. The company did not specify which rule or contractual provision had been breached.
Users and journalists pressed for clarity. Jack Newsham of Business Insider noted that Polymarket’s public Market Integrity page and terms of service do not make it clear which specific prohibition would apply in this situation.
The incident comes as Polymarket has been expanding monetization. After a fee-model change on March 30, reported daily fees rose from about $363,000 to more than $1 million, with peak daily fees nearing $1 million. The platform’s fee increases apply across categories including finance, politics and technology.
Prediction markets more broadly have also faced scrutiny over potential insider trading. Recent reports said a group of traders earned roughly $1 million by accurately betting on the timing of U.S. strikes on Iran, with some trades placed only hours before the attacks. Observers flagged suspicious patterns tied to newly created wallets concentrated on strike-related bets. In response to such concerns, at least 42 Democratic lawmakers urged the U.S. Commodity Futures Trading Commission and the Office of Government Ethics to warn federal employees against using non-public information when trading on prediction markets.
This story follows Cointelegraph’s Editorial Policy; readers are encouraged to verify information independently. Read the Editorial Policy at https://cointelegraph.com/editorial-policy