The U.S. Commodity Futures Trading Commission (CFTC) has initiated a comprehensive investigation into prediction market platform Polymarket, following revelations of fraudulent marketing practices. The probe, triggered by a Wall Street Journal report, focuses on fake transaction videos, undisclosed paid promotions, and cloned websites used to deceive users. Polymarket allegedly paid content creators to post misleading videos, resulting in significant user growth. Simultaneously, the National Association of Consumer Advocates (NACA) has filed a lawsuit against Polymarket and its executives, accusing them of deceptive advertising targeting college students. The investigation marks the first major scrutiny of a prediction market under CFTC Chairman Michael Selig. Additionally, Polymarket faces a hacking incident that compromised user funds, further complicating its regulatory challenges.