South Korean police send more than 20 Polymarket users to prosecutors

South Korean police have referred more than 20 domestic users of the prediction-market platform Polymarket to prosecutors on suspected illegal gambling charges. The Gangwon Police Agency has booked about 30 people and said it intends to refer every user confirmed to have used the platform with a recommendation to indict.

The cases concern alleged violations of Article 246 of the Criminal Act, which covers gambling and habitual gambling. ChosunBiz reported that those investigated live across the country, including in Gangwon Province, and that the agency opened its investigation around June after a request from police headquarters.

Under South Korean law, betting on sites other than Sports Toto is illegal. Sports Toto is operated by the Korea Sports Promotion Foundation and has a 100,000 won betting limit. A conviction under Article 246 can carry a fine of up to 10 million won.

Police regard Polymarket activity as gambling because users stake assets with economic value on uncertain outcomes, creating the prospect of gains or losses. The platform lets users trade contracts tied to real-world events, including elections, sports, economic data and weather.

The scale of the alleged activity was substantial. Twenty-six booked suspects had placed a combined 17.6 billion won in bets. One suspect alone had wagered 5.7 billion won.

Bitcoin.com reported earlier that the Gangwon Provincial Police Agency’s cyber-investigation unit identified users through public blockchain records and open-source intelligence, rather than a real-name roster from Polymarket. It said that, as of Sept. 15, 26 people had been booked and 18 referred to prosecutors. The people investigated were accused of gambling while Polymarket remained openly accessible, rather than of evading a later access restriction.

South Korea ordered domestic access to Polymarket blocked on Aug. 18 over gambling concerns. The Korea Media and Communications Standards Commission concluded that the platform facilitated gambling and that users’ gains and losses depended on events outside their control. The police inquiry was separate from that access-blocking decision.

The referrals do not settle the legal character of Polymarket under Korean law. Some legal experts expect guilty verdicts because cryptocurrency was staked on chance-based outcomes, while others contend that prediction markets can resemble investment in virtual-asset derivatives, particularly because positions can be sold before the underlying event is resolved. Analysts said the lack of specific government guidance could make uniform application of gambling charges difficult.