South Korean police have reportedly referred 18 Polymarket users to prosecutors as part of an illegal gambling investigation that involves 26 suspects and roughly 17.6 billion won (about $12.7 million) in wagers. The case is based on analysis of on-chain activity, according to a report citing data submitted by the National Police Agency.

Authorities say they identified participants by examining publicly available blockchain transactions tied to Polymarket, despite the platform operating without a conventional, real-name user registry. Suspects are accused of placing stakes on event outcomes that—under South Korean legal interpretation—amount to gambling.

Key takeaways

• South Korea’s police have referred 18 Polymarket users to prosecutors, based on an investigation covering 26 people and about 17.6 billion won in wagers.
• Investigators reportedly used publicly available blockchain transaction data to connect individuals to activity on the platform.
• Authorities argue Polymarket transactions fall under South Korea’s Criminal Act as illegal gambling, while users have framed the activity as crypto-based derivatives investment.
• Earlier actions included a June probe and an Aug. 18 decision to block Polymarket after a regulator found the platform’s structure fostered speculative gambling.
• The legal dispute hinges on how “uncertainty” and the structure of trading contracts are characterized under domestic law—especially given Polymarket’s noncustodial, smart-contract design.

How the investigation built from on-chain activity

According to Asia Economy, data provided to Democratic Party lawmaker Yoon Kun-young by the National Police Agency shows that the Gangwon Provincial Police Agency had 26 people under investigation as of Tuesday and had forwarded 18 of them to prosecutors. Asia Economy also reported that the largest wager attributed to a single user was about 5.7 billion won (roughly $4.1 million).

The report says police identified the suspects by analyzing publicly available blockchain transactions. That matters because Polymarket is described as operating on a noncustodial, peer-to-peer model with automated settlement, meaning it does not keep a traditional list of users linked to real-world identities. In other words, the investigation appears to rely on the traceability of transaction patterns rather than on account records maintained by the platform.

Polymarket’s basic premise is that participants can buy and sell contracts tied to real-world event outcomes. When those outcomes resolve, settlement is handled through smart contracts. Asia Economy’s account indicates that investigators nonetheless concluded these contract positions are functionally equivalent to wagering under local law.

The legal argument: gambling vs. derivatives

Authorities reportedly argued that Polymarket transactions constitute illegal gambling under South Korea’s Criminal Act. The basis of that classification, as described in the report, is that users stake assets on outcomes that cannot be predicted with certainty.

Users, however, pushed back. Asia Economy reports that suspects argued Polymarket should be treated as a crypto-based derivatives investment market instead of gambling. That framing reflects a common approach taken by prediction-market operators: trading event-linked contracts can resemble derivatives activity, including the ability to enter and exit positions before a contract settles.

Tae-Lim Kim, a managing attorney at AXIS Law, told Asia Economy that the transactions could meet the legal requirements for gambling. He also said that describing the activity strictly as prediction derivatives may be difficult as a defense in criminal proceedings. At the same time, he suggested that the ability to trade contracts and close positions before settlement could still become relevant for how a court evaluates the overall nature of the activity.

Regulatory pressure escalated before the referrals

The development comes after a visible escalation of South Korean enforcement against Polymarket. In June, Gangwon police launched what was described as South Korea’s first illegal gambling probe into local Polymarket users, acting at the request of the National Police Agency. Earlier coverage from Cointelegraph noted that the case began as an illegal gambling inquiry.

Then, on Aug. 18, South Korean authorities reportedly moved to block Polymarket after determining it provided an illegal gambling environment for users in the country. Cointelegraph previously reported that the blocking decision followed concerns over whether prediction-market activity was being regulated under existing gambling frameworks.

The report also cites the Korea media and communications review commission’s reasoning: it said the platform’s winner-takes-all structure encourages speculative gambling. The commission pointed to Polymarket’s role in operating the markets and setting trading rules, along with the platform’s handling of crypto deposits, withdrawals, settlement, and transaction fees.

Polymarket’s response, as summarized in the report, was that it does not provide Korean-language services or support payments in Korean won. The platform also argued that because transactions are noncustodial and executed via smart contracts, it does not directly manage users’ funds. The regulator rejected the argument, stating that technical design characteristics do not exempt a service from South Korean law.

What this means for users and for prediction markets in South Korea

For market participants, the referral of 18 users to prosecutors signals that enforcement is no longer limited to investigation or takedown efforts—it has moved into the formal legal process. The reported use of blockchain transaction analysis suggests that authorities may be able to map participants even when a platform does not maintain a direct, real-name customer list.

For prediction-market platforms and other “derivatives-like” crypto products, the dispute highlights a structural tension: even if a service is technically noncustodial and settlement is automated, regulators may still assess whether the activity resembles gambling based on how users stake value on uncertain outcomes and how profit is distributed (including whether trading resembles speculation rather than hedging).

Readers should watch whether prosecutors expand the case beyond the initial group of 26 and how courts interpret the defense arguments around derivatives characterization, particularly the practical ability to trade and exit positions before settlement.

There are guardrails, however.

The software running that market must be public and auditable and deployed on a public, permissionless blockchain. Access to the trading venue itself, however, remains permissioned, according to the SEC.

So no, this does not mean Apple or Microsoft stocks suddenly start trading freely on popular decentralized crypto exchanges that run on automated liquidity protocols (or smart contracts) rather than traditional order books.

It means regulated venues can test some of the technology pioneered by decentralized finance while still controlling who is allowed to trade.

And this sandbox is also deliberately small.

For the most liquid stocks, each venue can tokenize up to 75 names and handle no more than 0.25% of average daily trading volume. For a second tier of stocks, the cap rises to 250 names and 2.5% of average daily volume, according to Jamie Selway, the SEC’s director of trading and markets.

“The motivation for that was to, obviously, make a modest start,” Selway said. “Let’s get people going, measure the effect.”

For example, Tesla — one of the most highly traded stocks — has an average daily volume of about 40 million shares. By this definition, a qualifying venue could theoretically facilitate trading in up to roughly 100,000 tokenized Tesla shares a day, which is about $36.6 million at a $366 share price.

S&P Global is set to acquire the blockchain security company OpenZeppelin, expanding the financial data, ratings and benchmark provider’s digital asset capabilities.

The deal announced on Thursday is aimed at complementing S&P Global’s risk assessment and ecosystem development capabilities in the digital asset market, it said. Financial terms were not disclosed, and the transaction remains subject to closing conditions.

“Our digital assets strategy centers on bringing trusted data, benchmarks and transparent risk assessment to markets as they move onchain,” S&P Global ratings president Yann Le Pallec said. He added that OpenZeppelin would expand his company’s smart contract and onchain technology risk assessment capabilities.

Founded in 2015, OpenZeppelin develops open-source smart contract software and provides security assessments for blockchain projects and financial institutions. Its smart contracts have facilitated more than $37 trillion in value transferred, while the company has completed over 900 security engagements, the announcement notes.

OpenZeppelin said its contracts library and other open-source applications will remain free and publicly maintained on GitHub. The platform will operate as a separate S&P Global business unit, with CEO Demian Brener continuing to lead while reporting to Le Pallec.

Earlier this week, S&P Global led a strategic investment in Kaiko, extending the Paris-based crypto market data provider’s Series B funding to $110 million as it expands its data infrastructure for tokenized financial markets.

Related: Circle to acquire Tazapay to expand USDC cross-border payments

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

In her filing, Dr. Clinton claimed to have been estranged from her mother since 2022 after an incident during a family vacation when Kathleen Allman allegedly told Dr. Clinton’s young children, aged 10, six and two, that “they were worthless, that she should have aborted all of them, and that she might be fortunate if they drowned in the ocean during the visit.” Afterwards, Kathleen Allman denied saying anything of the kind, according to the filing.

The court filings also hint at a pattern of lavish spending, claiming that Kathleen Allman “came to depend on [Allman] for…a scale of living her own resources had never supported.” In June 2025, according to court documents, Allman bought his parents a beachfront home in Honolulu for $18.5 million.

“Petitioners note also that despite substantial earnings [Kathleen Allman] has a history of financial strain, including an occasion on which she could not meet a single month’s mortgage payment and borrowed from her own mother,” lawyers for Dr. Clinton and Chen wrote in their filing.

Before Allman’s death, the filings claim, Kathleen Allman “purchased or attempted to purchase a Zeelander yacht in Florida at a price on the order of $4 million; traveled by private aircraft, including a request that [Ondo Finance] bear a six-figure cost of a flight from Hawaii to California, and lodged at approximately $4,000 per night.”

WisdomTree and MoonPay are partnering to expand US investor access to a tokenized Treasury money market fund, which MoonPay also plans to use as part of its stablecoin reserves.

According to a Thursday announcement from the companies, the fund issuer is using MoonPay’s technology to develop an access point for its WisdomTree Treasury Money Market Digital Fund (WTGXX), a tokenized money market mutual fund that seeks to maintain a $1 share price. The companies said the arrangement would give WisdomTree access to MoonPay’s network of more than 35 million accounts.

MoonPay, a financial technology company that provides infrastructure for moving between fiat and digital assets, plans to use WTGXX as part of its stablecoin reserve management stack.

MoonPay launched its enterprise stablecoin business in November 2025 and issues dollar-denominated stablecoins across several blockchains, backed by US dollars and other high-quality liquid assets held in segregated accounts.

The collaboration could expand to additional tokenized funds, including in markets outside the United States, according to WisdomTree, which manages about $176.7 billion in assets.

On Thursday, the tokenized US Treasury market stood at about $15.4 billion, with WTGXX accounting for about $1.23 billion, according to RWA.xyz data.

Tokenized US Treasury Funds. Source: RWA.xyz

The fund has logged net flows of $466 million in the past 30 days. Net flows are calculated as the difference between tokens minted and tokens burned. Ondo U.S. Dollar Yield fund (USDY) was the only other tokenized Treasurys fund that saw positive net flows, $66 million, in the period.

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

WisdomTree and MoonPay have announced a partnership designed to make a tokenized U.S. Treasury money market fund easier for U.S. investors to access. The companies say MoonPay will supply technology that serves as a distribution access point for WisdomTree’s WisdomTree Treasury Money Market Digital Fund (WTGXX), which aims to maintain a $1 share price.

MoonPay also plans to use WTGXX within its stablecoin reserve management stack. The move highlights how regulated cash-like products are increasingly being structured to plug directly into stablecoin operations, rather than remaining siloed as standalone tokenized funds.

Key takeaways

• MoonPay will be used as an access point for WisdomTree’s tokenized Treasury money market fund, WTGXX.
• WisdomTree says the integration is meant to leverage MoonPay’s network of more than 35 million accounts.
• MoonPay intends to include WTGXX as part of its stablecoin reserve management approach.
• RWA.xyz data shows tokenized U.S. Treasury markets at about $15.4 billion, with WTGXX around $1.23 billion.
• WTGXX reportedly recorded $466 million in net flows over the prior 30 days, calculated from token minting and burning.

A tokenized money market fund built around $1 stability

The partnership centers on WTGXX, WisdomTree’s tokenized money market mutual fund. According to the companies’ announcement, the fund is structured to target a stable $1 share price—an important design choice for investors seeking lower-volatility exposure compared with traditional crypto assets.

In this setup, MoonPay’s technology is expected to create the practical on-ramp for investors who want exposure to the tokenized fund. The firms framed the distribution benefit around scale: WisdomTree said the arrangement would give it access to MoonPay’s network of more than 35 million accounts.

For market participants, this matters because the usability gap has often been the limiting factor for tokenized funds. Tokenization alone doesn’t guarantee demand; access, custody workflows, and investor onboarding typically determine whether a product actually attracts capital.

Why MoonPay wants WTGXX in its reserves

MoonPay, which provides infrastructure for moving between fiat and digital assets, plans to use WTGXX as part of its stablecoin reserve management. In the announcement, the companies positioned the fund as a fit for the kinds of high-quality, liquid assets that stablecoin issuers and treasury operators typically seek.

MoonPay said it launched its enterprise stablecoin business in November 2025. The company issues dollar-denominated stablecoins across several blockchains, backed by U.S. dollars and other high-quality liquid assets held in segregated accounts.

This is the first-time, at least in the way described publicly here, that a specific tokenized Treasury money market fund has been tied directly to MoonPay’s reserve stack. If the integration works smoothly, it could help normalize a broader “tokenized cash management” model—where Treasury-like products become operational inputs to stablecoin liquidity and redemption capacity.

How big is WTGXX in the tokenized Treasury market?

RWA.xyz data cited in the announcement suggests the tokenized U.S. Treasury market is roughly $15.4 billion in size. Within that category, WTGXX accounts for about $1.23 billion.

While WTGXX is not the largest tokenized Treasury product on the list by the numbers provided, it is significant enough to matter to both sides of the ecosystem—investors allocating to tokenized money market instruments and operators building stablecoin reserve workflows.

Volume and momentum are also part of the story. The companies said WTGXX recorded net flows of $466 million in the past 30 days. Net flows were calculated as the difference between tokens minted and tokens burned. In the same timeframe, the Ondo U.S. Dollar Yield fund (USDY) was the only other tokenized Treasurys fund mentioned as having positive net flows, at $66 million.

This relative outperformance matters because flows often function as a proxy for perceived usability and demand. If WTGXX continues to attract inflows after the distribution changes, it could strengthen its role as a reserve asset candidate across the stablecoin infrastructure stack.

Potential expansion beyond the first integration

WisdomTree said the collaboration could extend to additional tokenized funds, including in markets outside the United States. The firm also reported that it manages about $176.7 billion in assets, underscoring that it is approaching tokenized Treasurys and cash-like instruments as part of a broader product strategy rather than a one-off experiment.

For investors, the watch item is whether expanded distribution and stablecoin reserve adoption increase real-world liquidity and reduce friction across onboarding and transfers. For builders, the broader implication is that stablecoin reserves may increasingly rely on tokenized, share-priced cash instruments—creating demand for issuance rails and distribution access points similar to the one MoonPay is providing here.

Still, several practical questions remain open. The announcement focuses on the technology and the intended uses, but readers should watch for details on how investors experience the onboarding process, what custody and settlement mechanics are involved for U.S. participants, and whether MoonPay’s reserve integration affects WTGXX’s day-to-day token mint-and-burn dynamics.

Going forward, the clearest signals to track are whether tokenized Treasury market share shifts toward WTGXX after this access partnership, and whether MoonPay’s reserve allocation approach expands to other tokenized cash products as additional markets and funds are considered.