Users of Polymarket have wagered more than $7 million on which crypto firm will be named in an upcoming investigation by onchain sleuth ZachXBT, with decentralised liquidity platform Meteora at 29%.
ZachXBT said in a post on X that he would publish a “major investigation” on Thursday into “one of crypto’s profitable businesses,” alleging that multiple employees at the unnamed platform “abused internal data to insider trade over a prolonged period of time.”
Polymarket users have been able to bet on several potential targets including Meteora, MEXC, Axiom and Wintermute, though the platform’s event contract probabilities reflect trading activity rather than confirmed knowledge of the investigation’s subject.
The surge in wagering comes as prediction markets face increasing scrutiny in the United States, where regulators are debating jurisdiction over platforms that offer contracts tied to real-world events.
Commodity Futures Trading Commission chair Michael Selig said the federal agency has “exclusive jurisdiction” over prediction markets, likening them to derivatives exchanges and warning that state-level challenges would be contested in court.
Polymarket has separately challenged enforcement action by the state of Massachusetts, arguing that oversight of such markets rests solely with the CFTC rather than individual states.