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South Korean police have begun questioning local Polymarket users on suspicion of illegal gambling, opening a criminal probe tied to prediction-market trading.
The Cyber Crime Investigation Unit at the Gangwon Provincial Police Agency has identified domestic users by tracing crypto transaction records, according to local reports. Police are summoning users one by one.
Gangwon Police Trace Crypto Transaction Records
The probe focuses on South Korean users who traded on Polymarket, a crypto-based prediction market where users buy and sell positions on future outcomes.
Legal sources cited by Korean media said police have booked users on gambling charges and are questioning them as suspects. Investigators are reportedly sorting users by transaction records, transfer size and frequency of platform use.
June 3 Election Markets Drew Scrutiny
Polymarket drew local attention after users placed bets tied to South Korea’s June 3 elections. The platform also lists markets on politics, sports, crypto prices and world events.
Regulators are reviewing whether that activity should be treated as gambling under domestic law. South Korea’s Korea Communications Standards Commission was already reviewing whether Polymarket should be treated as illegal gambling before the police summonses began.
Users Face Article 246 Gambling Risk
The legal issue centers on Article 246 of South Korea’s Criminal Act. The provision punishes gambling with a fine of up to 10 million won. Habitual gambling can carry imprisonment of up to three years or a fine of up to 20 million won.
Ahn Chang-bo, a former gambling-case prosecutor now practicing at Law Office Jonjung, said there has not yet been a prosecution or court ruling on whether Polymarket use qualifies as gambling under South Korean law.
Spain Block Adds Pressure on Prediction Markets
The South Korean probe adds to regulatory pressure on prediction markets outside the U.S. Spain recently blocked access to Polymarket and Kalshi while investigating whether the platforms were operating without gambling licenses.
The South Korean case is different because police appear to be targeting users, not only platform access. Prosecutors will now have to decide whether to treat the trades as gambling or stop short of taking the case to court.
