Polymarket loosened anti-money-laundering rule during $10 million stolen-card attack, WSJ reports
A Wall Street Journal investigation found Polymarket removed an anti-money-laundering control while fraudsters exploited its U.S. platform in a $10 million stolen-card attack. The article is paywalled beyond the lede, so further details about the timing of the rule change, which control was removed, and any company response are not available.
Any weakening of AML controls at a CFTC-regulated platform during an active fraud attack raises immediate compliance questions and could draw regulatory scrutiny from both the CFTC and banking partners.
Third Polymarket story this week tied to the same $10 million fraud incident, joining CEO directives and payment-processor blocks as evidence the CFTC can cite in its open probe of deliberate compliance negligence.