South Korean police charge 26 Polymarket users over $12.7M in bets

South Korean police booked 26 local users of the prediction platform Polymarket on suspicion of illegal gambling. A regulatory determination found that the site created an illegal gambling environment for domestic residents, prompting these charges.

The 26 individuals placed combined wagers of approximately 17.6 billion won, or $12.7 million, on the platform. One user recorded the largest cumulative stake, reaching 5.7 billion won, or $4.1 million.

Police determined that wagering on yes-or-no event contracts violates Article 246 of the country's Criminal Act as it constitutes illegal gambling, since users stake assets on outcomes beyond their control. The charged individuals reportedly contended that Polymarket should be classified as a crypto-based derivatives market, highlighting that contracts trade on an order book and allow closure before expiration.

The legal status of the platform is still under dispute. In its defense before the regulator, the company asserted that it functions without custody, refuses payments in Korean won, and has stopped providing services in the Korean language. This police initiative to file individual criminal charges comes after a regulatory order last month that blocked domestic access to the site.