Polymarket and Kalshi targeted by stolen debit card laundering scheme
Polymarket is being targeted by criminals using stolen debit cards to launder money through its U.S. prediction market platform, according to a Wall Street Journal report. Scammers link stolen cards to accounts, place bets, and attempt to withdraw winnings to clean accounts. The report notes Kalshi does not use a same-source withdrawal rule but inspects mismatched withdrawals and freezes suspicious ones.
The stolen-card scheme gives CFTC investigators a concrete fraud pattern tied to Polymarket's decision to loosen AML controls for growth, amid its existing probe into compliance failures. For Polymarket, each new enforcement front drains legal resources and invites copycat state actions.
Kalshi is stretched across Ohio, Tennessee, and other state defenses but faces less direct exposure here. The first regulatory body to issue a formal finding will likely trigger risk reviews by banking partners and payment processors, cutting off fiat rails that retail traders depend on.