Polymarket allegedly paid influencers at least $350,000 for undisclosed promotions: report

The publication reported that Modabber transferred more than $2.5 million to over 800 people during that period, while records reviewed by reporters identified at least 20 influencers who later posted about Polymarket hundreds of times on social media.

Among those who reportedly received payments were conservative influencer Alex LoRusso, political commentator Brian Krassenstein, former collegiate swimmer and Fox News contributor Riley Gaines, and several other online personalities with large followings across the political spectrum.

A Polymarket spokesperson told POLITICO that working with content creators forms part of the company’s normal business practices and said the platform regularly collaborates with independent organizations, partners, and creators to support its mission of providing market-based insights. 

The spokesperson declined to discuss the company’s disclosure policies, the use of Modabber’s personal PayPal account, or whether the payments were reported as business expenses.

Influencer campaign grows alongside Polymarket’s expansion

Records reviewed by POLITICO showed that at least 20 creators who received money from Modabber posted about Polymarket on X after the payments began. The publication counted more than 490 posts mentioning the platform during the review period and reported that none included disclosures identifying them as paid promotions.

Federal Trade Commission guidance requires influencers to disclose material connections when endorsing products or services. Speaking to POLITICO, former FTC deputy general counsel Robin Moore said the activity described in the report appeared to be the type of arrangement that generally should be disclosed.

Several creators promoted major Polymarket developments after receiving payments, according to the report. Following the launch of a Department of Government Efficiency dashboard in February 2025, influencer Eric Daugherty described the release as a breaking development to his audience. Riley Gaines and media personality Elijah Schaffer also shared posts praising the feature, POLITICO reported.

Later in June, after Polymarket announced a partnership with Elon Musk’s artificial intelligence company xAI, multiple paid influencers published supportive posts within hours of each other, according to POLITICO’s review of social media activity.

One influencer who spoke anonymously to the publication said Polymarket occasionally supplied suggested posts and directed creators toward specific markets or announcements that it wanted promoted.

Meanwhile, Shane Ginsberg, founder of the social media marketing company Street Poller, reportedly received at least $77,000 from Modabber. POLITICO reported that Ginsberg’s network of creators produced man-on-the-street videos promoting Polymarket during the run-up to the 2024 U.S. presidential election, with some creators displaying Polymarket branding even when the platform itself was not directly mentioned.

Regulatory scrutiny continues to build

The marketing campaign has emerged as Polymarket faces increasing legal and regulatory attention in several jurisdictions.

Separately, South Korean authorities have recently opened what Chosun Biz described as the country’s first known investigation into domestic Polymarket users. The Gangwon Provincial Police Agency is examining whether participation on the platform violated South Korea’s gambling laws, with investigators reportedly considering whether user activity falls under provisions of the Criminal Act governing gambling offenses.

Regulators and prosecutors in South Korea have recently shown a willingness to apply existing laws to blockchain-based activities. As previously reported, prosecutors charged several individuals linked to the CATFI meme coin rug pull in a case described by Digital Asset as the country’s first prosecution involving a decentralized exchange under the Virtual Asset User Protection Act.

Pressure has also increased in the United States. In May, the U.S. Department of Justice charged Google software engineer Michele Spagnuolo with commodities fraud, wire fraud, and money laundering after alleging he used confidential company information to profit from prediction market contracts on Polymarket tied to Google’s annual search rankings. Prosecutors said the activity generated roughly $1.2 million in profit.

At the same time, the Commodity Futures Trading Commission filed a parallel civil complaint and reiterated that insider trading laws apply to prediction markets. Enforcement Director David Miller said the agency remains focused on preventing the misuse of nonpublic information in markets under its jurisdiction.

Questions around Polymarket’s market operations have also drawn criticism from traders. Last week, a disputed market asking whether Strategy would sell Bitcoin before May 31 concluded with a “No” outcome after a final UMA review, despite a regulatory filing showing that Strategy had sold 32 Bitcoin during the final week of May. 

The resolution sparked complaints from several traders and prompted renewed debate over how prediction markets should handle disputed outcomes and post-trade rule clarifications.