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Offshore Polymarket Still Handles Billions While U.S. Platform Lags

Regulators’ geo‑blocking has not stopped many Americans from using the offshore crypto platform, creating enforcement and market‑integrity risks.

Overview

  • Polymarket’s international crypto exchange processed roughly $9 billion in April 2026 and about $7.1 billion in May 2026 while its licensed U.S. app recorded roughly $1.3–$1.8 billion over the same months.
  • Two independent studies estimate U.S. users account for about 30% of Polymarket’s volume, with one firm putting American‑linked offshore activity at $11 billion to $34 billion over the 12 months ending April 2026.
  • Researchers say many U.S. traders bypass geo‑blocks by using VPNs and timing or market‑choice patterns that reveal likely U.S. participation, which makes precise enforcement and measurement difficult.
  • Regulators have acted before—the CFTC fined Polymarket in 2022 and the DOJ has brought insider‑trading charges connected to platform trades—but officials face practical limits policing offshore crypto venues.
  • The imbalance of deep offshore liquidity versus smaller regulated venues forces a legal and operational choice for traders and could push volume toward regulated competitors such as Kalshi if enforcement tightens.