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Polymarket's Probe Highlights Challenges of Blocking U.S. Users (and Their VPNs)

Polymarket, a crypto prediction market platform, is under investigation by the DOJ for allegedly allowing U.S. users to trade, potentially breaching a 2022 CFTC settlement that prohibited this. Despite blocking U.S. IP addresses, U.S. users reportedly bypass restrictions with VPNs. Experts suggest more stringent measures, like KYC, GPS tracking, and monitoring VPN usage, though these introduce privacy and practicality challenges. The case underscores broader regulatory issues in crypto, especially regarding U.S. jurisdiction and compliance with local laws. Polymarket's Panamanian registration does not exempt it from U.S. law if it affects U.S. residents.