South Korean Authorities Refer 18 Polymarket Users to Prosecutors

South Korean law enforcement agencies have escalated a major crackdown on decentralized prediction platforms, referring 18 individuals to public prosecutors in connection with an extensive Polymarket gambling probe. The action follows an investigation by police into 26 total individuals who allegedly conducted unauthorized betting activities across digital asset prediction contracts.

The total value of wagers involved in the probe reached an estimated $12.7 million across diverse speculative event markets. As reported by Cointelegraph, South Korean authorities consider participation in offshore, unlicensed wagering systems a direct violation of national gambling statutes, regardless of whether the transactions are executed through smart contracts or decentralized protocols.

South Korea maintains some of the strictest gambling frameworks globally, with strict legal prohibitions that apply to its citizens both domestically and internationally. The legal action signals that regulatory authorities are actively bridging the gap between blockchain-based decentralized finance activities and traditional criminal enforcement frameworks.

This legal referral could set a significant precedent for how international jurisdictions handle user participation on decentralized event platforms. Observers will monitor how prosecutors proceed with formal indictments and whether local regulators implement stricter domain-level blocking against non-compliant decentralized prediction services.