Polymarket faces compliance scrutiny after attempted $10M+ card fraud

💳 According to the WSJ, fraudsters using stolen debit cards attempted to move at least $10 million through Polymarket US in February 2026. Most transactions were blocked, while Checkout.com reportedly rejected more than 80% of deposits at the peak due to suspected fraud.

⚠️ The episode highlighted tensions between growth and risk controls. CEO Shayne Coplan was reportedly urged to keep expanding despite compliance warnings, although Polymarket has not confirmed the reported remarks.

🛡️ The company later tightened payment limits, added fraud-prevention systems and expanded its risk team. Fraud rates were subsequently reported to have fallen closer to normal levels.

🏛️ For now, the issue primarily adds compliance and regulatory pressure rather than confirming that Polymarket actually lost $10 million.

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