CFTC monitors Polymarket and offshore platforms ahead of US elections

The United States Commodity Futures Trading Commission (CFTC) is keeping a close watch on Polymarket and other offshore crypto betting platforms, particularly those offering services to US customers.

During a discussion at Georgetown Psaros Center for Financial Markets and Policy on July 17, CFTC Chair Rostin Behnam emphasized the need for these platforms to operate within legal boundaries.

He stated that the commission is “observing any activity” involving offshore platforms that provide exposure to US customers.

Behnam further warned that enforcement action would be taken if any platform has a significant presence in the US but fails to register its derivative contracts.

The scrutiny comes amid growing regulatory action in the crypto space.

On September 17, the Securities and Exchange Commission (SEC) filed its first lawsuit against crypto scammers involved in “pig butchering” schemes.

The SEC accused entities connected to the exchanges CoinW6 and NanoBit of defrauding investors of $3.2 million.

The fraudsters allegedly built trust with investors through social media platforms, creating fake crypto ecosystems that displayed false information.

In another significant regulatory move, German authorities seized 47 cryptocurrency exchanges on September 19.

The exchanges were reportedly involved in an “underground economy” where cybercriminals could launder funds.

German officials claimed that these exchanges deliberately hid the origins of illicit money on a large scale, benefiting cybercriminals such as botnet operators and ransomware attackers.

These actions are part of an increasing crackdown on illegal activities in the crypto space.

US federal agents also arrested two individuals on September 19 for their involvement in a $230 million Bitcoin (CRYPTO:BTC) scam.

The suspects, Jeandiel Serrano and Malone Lam, allegedly stole over 4,100 BTC from a Washington, D.C. resident using sophisticated online aliases and methods to launder the funds.