CFTC Opens Three Investigations Into Polymarket Trades, Documents Show

September 12, 2026 at 12:21 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The Commodity Futures Trading Commission launched at least three previously unreported investigations into trading on Polymarket, according to documents obtained by WIRED. The probes cover potential insider trading on contracts tied to Biden pardons, Iran events, and Google search rankings. The orders came after media reports of suspicious trading profits on those markets.

Key Facts

CFTC chairman Michael Selig approved an investigation order in early May into potential insider trading on Polymarket contracts related to pardons issued by former president Joseph Biden.
At the end of May, Selig approved a second investigation order focused on Iran event contracts on Polymarket.
In July, Selig greenlit a third investigation into suspected insider trading on Google-themed Polymarket event contracts.
The Southern District of New York is conducting a parallel investigation into the Google-related trades, according to CFTC acting enforcement director Paul Hayeck.

Investigation Orders

The CFTC approved three investigation orders between May and July 2026, according to documents obtained by WIRED through a Freedom of Information Act request. The first order, approved in early May by CFTC chairman Michael Selig, authorized the enforcement division to investigate potential insider trading on Polymarket event contracts related to pardons issued by former president Joseph Biden. The order granted permission to take testimony, obtain subpoenas, administer oaths, and require the production of documents. At the end of May, Selig approved a second order focused on Iran event contracts on Polymarket. In July, Selig approved a third investigation into suspected insider trading on Google-themed Polymarket event contracts.

Media Reports Preceding Orders

The Biden pardon investigation order came several weeks after an NPR report on a suspicious Polymarket trader who netted over $300,000 on pardon-related markets in the final days of the Biden Administration. The Iran investigation order came two weeks after 60 Minutes aired a report on a network of suspicious Polymarket accounts that made $2.4 million on Iran-related trades, with a 98 percent win rate. The Google investigation order followed an email exchange in which Paul Hayeck, acting director of the CFTC's department of enforcement, noted the investigation would focus on additional individuals who may have engaged in insider trading related to Google's 2025 Year in Search Ranking.

Parallel Investigation and Responses

Hayeck wrote that the Southern District of New York is conducting a parallel investigation into the Google-related trades. He specified that the CFTC's investigation would be separate from the ongoing case against Michele Spagnuolo, a Google engineer accused of insider trading. SDNY did not respond to requests for comment, and Google declined to comment, pointing to a June statement noting that Spagnuolo was no longer with the company.