### French Authorities Investigate Crypto Betting Platform Polymarket

The French National Gaming Authority has initiated an investigation into the crypto betting platform Polymarket, as revealed on Thursday. In a statement to POLITICO, the regulator indicated that it is scrutinizing the operation and legal compliance of Polymarket under France's gambling legislation.

Polymarket allows users to place cryptocurrency bets on the outcomes of various high-profile events. The platform gained significant attention during the U.S. presidential election. In May, Founders Fund, led by tech billionaire Peter Thiel, invested $45 million into the platform.

The platform touts its "prediction markets" as frequently more accurate than traditional pundit forecasts, attributing this to their integration of news, polls, and expert opinions into a single predictive value.

Despite its popularity, Polymarket has not received authorization to operate in France. An official, speaking anonymously about the ongoing investigation, noted that French regulators had been monitoring Polymarket's activities even before the recent U.S. election.

There are increasing signs of regulatory actions, with The Big Whale, a cryptocurrency news outlet, reporting that a ban on Polymarket in France is imminent. Polymarket has declined to comment on the situation.

Polymarket's predictive power drew considerable attention when it showed a significant betting trend favoring Donald Trump over Kamala Harris in the presidential race, a prediction even Trump boasted about on his Truth Social account. However, closer to the election, the platform consistently showed Harris leading the popular vote, even though Trump is now on track to win.

The New York Times recently spotlighted a French user who wagered $28 million on a Trump victory, significantly affecting the betting odds on the platform. Polymarket has responded by stating that their investigation into this large bet found no evidence of market manipulation.

The Wall Street Journal reported that the bettor's winnings were close to $50 million. Given the stringent nature of France’s gambling regulations, which require official authorization, Polymarket's unregistered status has raised concerns.

Polymarket, based in New York, claims it does not serve U.S. users. However, it faced charges from the Commodity Futures Trading Commission (CFTC) in 2022 for operating illegally in the United States, leading to a settlement. Now, the CFTC is pushing to ban all election betting within U.S. derivatives markets.