Polymarket Fake-Bet Marketing Suit Moves to D.C. Federal Court as 20x Leverage Perps Launch

Polymarket's lawyers moved a District of Columbia deceptive-marketing case into federal court on Sept. 3, according to Law360. The complaint accuses the prediction market of paying creators to film bets they never placed.

The National Association of Consumer Advocates sued Blockratize, the company behind Polymarket, in D.C. Superior Court on June 26, 2026, and also named Chief Executive Shayne Coplan and Chief Marketing Officer Matthew Modabber. The filing cites a Wall Street Journal review of 1,105 creator videos: about 70% showed a wager, 118 showed a win, and the complaint says none of the money was real.

Complaint Traces $350,000 in Undisclosed Payments

Modabber sent at least $350,000 to influencers from a personal PayPal account between January 2025 and February 2026, according to the complaint. Nothing in the resulting posts marked them as advertising.

Creators filmed their wins on a simulated copy of the site. That fake platform let Polymarket reach Americans while a Commodity Futures Trading Commission (CFTC) settlement kept the real exchange closed to them, the complaint says.

A second tier of workers cut that footage into clips and posted it from fresh accounts, paid $1 for every 1,000 views.

Do NOT make the videos feel like ads or promotions.

That instruction went to the clippers, according to the complaint. Campus campaigns paid students $500 to $2,000, and fraternities collected $15 for each user they signed up.

Polymarket declined to comment on the suit. A spokesperson said the company is "conducting a comprehensive audit of active promotional content to ensure it complies with our standards, as well as applicable regulatory and legal disclosure requirements."

Polymarket Adds 20x Leverage the Same Day

Polymarket opened Perps on Sept. 3, according to multiple reports, offering up to 20x leverage on positions that never expire. Its own product page lists 67 contracts across crypto, stocks, indices and commodities, and the launch covers traders outside the United States.

The CFTC fined Blockratize $1.4 million on Jan. 3, 2022 and ordered it to wind down non-compliant markets. NACA now wants restitution, disgorgement of profits and a permanent injunction. The company is also in talks to raise about $1 billion.

Front Office Sports reported in June that the CFTC is examining Polymarket's marketing, citing a person familiar with the matter. Neither the agency nor the company has said whether that review is still open.

Treat gambling as entertainment you pay for. 18+, and if it stops feeling like entertainment, help exists at BeGambleAware and GamCare.