South Korean police have referred 18 users of the prediction platform Polymarket to prosecutors as part of an investigation into illegal gambling. The probe involves a total of 26 individuals who collectively placed bets amounting to approximately ₩17.6 billion, which is equivalent to $12.7 million.
According to data from the National Police Agency, the largest individual wager identified during the investigation reached ₩5.7 billion, or $4.1 million. Authorities tracked the users by analyzing blockchain transactions, as the platform operates on a noncustodial, peer-to-peer structure without maintaining a traditional user registry.
South Korean officials classified Polymarket transactions as illegal gambling under the national Criminal Act, arguing that users stake assets on unpredictable outcomes. In August, the country moved to block access to the platform, citing its winner-takes-all structure and the provision of crypto-based deposit and settlement services.
Polymarket defended its operations by noting the absence of Korean-language support and the lack of direct fund management due to its smart contract architecture. However, the media and communications review commission rejected these arguments, stating that technical features do not exempt a service from local legal requirements.
