A Politico investigation alleges Polymarket’s CMO funneled $2.5 million through a personal PayPal account, with at least $350,000 tied to hundreds of undisclosed influencer posts.
Recipients of payments from Matthew Modabber
According to a Politico investigation, Polymarket’s chief marketing officer, Matthew Modabber, used a personal PayPal account that he opened at a salad restaurant he co-founded to send over $2.5 million to more than 800 people from January 2025 to February 2026. At least $350,000 of that is directly attributed to social media influencers posting promotional material.
Polymarket is paying some of social media’s biggest political influencers https://t.co/hUuZ30LThF
— POLITICO (@politico) June 5, 2026
The first post was received when Shirley began to receive money from Modabber, and the second post was received when Modabber had taken in a total of $3,100, Politico reported
Reading more: Polymarket Pushes Mandatory KYC Amid Regulatory Pressure – Ledger Tribune
Records Politico obtained show that Nick Shirley, a far-right social media personality with 1.6 million followers on X, was paid to post content that prominently included the Polymarket brand, such as a viral video and a man-on-the-street interview series, without any disclosure of a paid partnership being visible on either post.
Key findings
CMO Matthew Modabber has raised questions about tax reporting and financial transparency by using a personal PayPal account instead of a corporate account to pay for a restaurant he co-owns.
After receiving the money, the 20 influencers posted almost 500 times about Polymarket, with the overwhelming majority of posts failing to include any sponsored-content disclosure.
Polymarket said influencer partnerships are a “standard business practice.” However, it did not explain its disclosure rules. It also did not address payments made to personal accounts or tax handling.
In addition, several content creators received payments. These creators come from both left-leaning and right-leaning groups. The list includes Alex LoRusso, Riley Gaines, and Brian Krassenstein.
Bloomberg reported a similar issue in November 2024. The report found that Polymarket paid U.S. influencers to promote election betting. However, U.S. residents were not allowed to place bets on the platform. The report also highlighted Polymarket’s aggressive marketing strategy. At the same time, it raised concerns about regulatory compliance and oversight.
The recent revelations have brought the broader question of the ethics of journalism, prediction markets, and crypto-native marketing back into the spotlight, as The Verge reports outlets such as ProPublica and Kalshi have also been called out for their ties with prediction markets.
Why it matters
The FTC has set rules for social media influencers to make it clear when they have a paid partnership. When a sponsored post is not clearly labeled, it misleads viewers about real endorsements. As a result, audiences may trust content that is actually paid promotion. Moreover, this situation can trigger regulatory penalties for both the platform and the creators. In addition, unclear disclosures can increase legal risk for marketing campaigns.
Furthermore, the company used a personal account for payments. This practice raises concerns about standard corporate compliance. It also questions whether proper tax-reporting rules were followed.