Police Send 18 PolyMarket Users to Prosecutors for Gambling Suspicions

South Korean police have arrested 26 users of the virtual asset prediction platform PolyMarket, sending 18 to prosecutors. Cumulative betting amounted to approximately 17.6 billion won, with an individual maximum bet of about 5.7 billion won.

A report from the National Police Agency shows that the Gangwon Cyber Investigation Unit began pre-arrest investigations in March and arrested a total of 26 users by May, sending 18 to prosecutors. The cumulative betting amount was reported as approximately 17.6 billion won at exchange rates, with individual maximum bets reaching about 5.7 billion won.

PolyMarket operates on a structure where users predict the occurrence of global political, social, and economic events by answering 'yes' or 'no,' receiving 1 USDC per share for correct predictions while losing invested funds for incorrect ones. The platform uses an un托管 peer-to-peer (P2P) automatic settlement system without holding or managing user identities.

The police explained that while it is difficult to obtain a list of domestic users from the platform operator, blockchain transaction records are public, allowing them to identify individual users through open-source intelligence (OSINT) analysis.

Authorities determined that gambling charges apply, citing a Supreme Court precedent stating that even if an individual's ability influences outcomes, gambling laws may still apply when random factors are involved. The police stated the platform involves 'betting economic value on results that cannot be predicted or freely controlled,' meeting the legal definition of gambling under Article 246 of the Criminal Code.

They also noted that similarities to derivative investments or lack of specific guidelines do not exempt the activity from gambling charges, and each case will be assessed based on transaction details and relevant laws.