South Korea Moves 18 Polymarket Users to Prosecutors Over $12.7M in Wagers

South Korean authorities have forwarded 18 individuals who used Polymarket to prosecutors on suspicions of unlawful gambling activity. This step heightens a probe that has been examining bets placed on the platform's election-related markets for several months.

Lawmaker Yoon Kun-young's office disclosed the numbers after obtaining them from the National Police Agency. The case extends a wider enforcement push against the predictions market platform by adding individual criminal proceedings.

What the Investigation Found

As of September 15, the Cyber Investigation Unit of the Gangwon Provincial Police Agency had opened formal inquiries into 26 users. Those 26 placed aggregate wagers worth 17.6 billion won, approximately $12.7 million, across Polymarket’s political, economic and social contracts.

A single user wagered around 5.7 billion won, nearly $3.8 million.

Investigators identified bettors by applying open-source intelligence (OSINT) techniques to publicly visible blockchain transaction records. The approach enabled them to pinpoint individual wallet holders even though the platform was designed to be anonymous.

Police contend that the trades satisfy the legal criteria for gambling under Article 246 of South Korea’s Criminal Act. They point to a Supreme Court precedent that says placing property on an uncertain outcome constitutes gambling, regardless of any skill involved.

The users under investigation argue that their activity is closer to derivatives investing than to betting. That distinction is expected to be a key factor in how the courts eventually rule.

Part of a Wider Crackdown in South Korea

The prosecutions come after a separate action by South Korea’s broadcasting and communications regulator. In August, the regulator directed internet service providers to restrict domestic access to Polymarket, stating that its winner-take-all payout structure made it illegal.

Polymarket maintained that the absence of a Korean-language interface and won-denominated payments should keep it outside local jurisdiction. The regulator dismissed that argument.

Attorney Kim Tae-rim of AXIS Law highlighted a structural difference: Polymarket’s contracts trade on an order book and can be sold before expiry, unlike a conventional bet.

Kim said that difference may become a central point for judges to consider.

Polymarket is already under increasing regulatory scrutiny worldwide regarding its trader verification and monitoring practices. The way South Korean courts classify its contracts could create a precedent for other nations dealing with similar cases.