South Korea Investigates 17.6 Billion Won in Polymarket Transactions: Investment or Gambling?

South Korean police have launched an investigation into 26 users accused of illegal gambling on Polymarket.

According to reports from Asia Economy, the users under investigation placed bets totaling 17.6 billion won (approximately $12.7 million) on Polymarket. Police have referred 18 of these individuals to the prosecution.

The highest amount in the investigation was a 5.7 billion won bet associated with a single user. Authorities utilized public blockchain records and open-source intelligence (OSINT) methods to identify the users.

South Korea investigates Polymarket transactions under illegal gambling scope

South Korean police argue that Polymarket transactions should not be considered solely as investment activities. According to the explanation in the image, the uncertain outcomes of the transactions and users’ attempts to gain or lose assets are being investigated as gambling offenses.

Authorities state that these transactions involving virtual assets could be evaluated under Article 246 of the Criminal Act.

South Korea had blocked access to Polymarket, one of the world’s largest prediction market platforms, on August 18. The new investigation, unlike the access block decision against the platform, focuses directly on users’ transactions and potential criminal liabilities.