Polymarket Reportedly Eased Anti-Money Laundering Rules During $10 Million Fraud Attack

A Wall Street Journal investigation reveals that Polymarket U.S. faced a $10 million fraud attack involving stolen debit cards starting in February. Reports indicate that leadership prioritized growth over compliance, allegedly dropping a requirement that funds be withdrawn to the same source used for deposits. Despite warnings from employees regarding money laundering risks, the company maintained its stance until fraud rates returned to industry norms by May. Several compliance and regulatory executives resigned or were fired during this period, though an internal investigation by Sullivan & Cromwell concluded the company remained compliant.