Polymarket, the leading decentralized prediction market, is facing intense scrutiny following reports that its Chief Marketing Officer quietly funneled millions of dollars to social media influencers to promote the platform without proper disclosures.
The Secret PayPal Trail
According to a detailed investigation by POLITICO, Polymarket’s CMO Matthew Modabber used a personal PayPal account to distribute over $2.5 million to more than 800 individuals between January 2025 and February 2026.
At least $350,000 of those funds went directly to content creators on X (formerly Twitter). The investigation revealed that approximately two dozen of these creators posted around 490 times about the platform without ever disclosing they were being compensated. This stealth Polymarket influencer campaign bypassed standard corporate transparency channels.
- Total Funds Disbursed: Over $2.5 Million
- Total Recipients: 800+ individuals
- Undisclosed Influencer Budget: At least $350,000
- Undisclosed Promotional Posts: ~490 posts
Shaping the Narrative Behind the Scenes
The paid recipients spanned the political and cultural spectrum, including prominent figures such as Nick Shirley, Riley Gaines, and Brian Krassenstein. Many of the sponsored posts framed routine fluctuations in Polymarket’s betting odds as “BREAKING” or “NEW” organic developments.
One creator, speaking on the condition of anonymity, described a highly controlling campaign structure:
“They actually supplied the scripts and dictated exactly when posts went live. They told us, ‘This one needs to get out now,’ treating us like cattle rather than independent creators.”
Adding to the unusual nature of the operation, the PayPal account used by Modabber was reportedly registered to an email address associated with a salad shop he co-founded.
Regulatory Red Flags and FTC Guidelines
The Federal Trade Commission (FTC) mandates that social media influencers clearly and conspicuously disclose any material connection to a brand they are promoting. Failing to label sponsored content with tags like #ad or #sponsored violates these consumer protection guidelines.
While a Polymarket spokesperson defended influencer marketing as a standard industry practice, they declined to comment on the lack of disclosure or why a personal PayPal account was utilized for corporate marketing expenses.
Frequently Asked Questions (FAQ)
Are the PayPal payments illegal?
The payments themselves are not illegal, but the failure of influencers to disclose that they were paid to post violates FTC guidelines regarding deceptive advertising.
How does this affect Polymarket’s standing?
This controversy arrives at a sensitive time as Polymarket seeks regulatory legitimacy in the U.S. and battles rivals like Kalshi. Undisclosed promotional campaigns could attract formal regulatory investigations.
