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Polymarket Withholds Payouts on Venezuela ‘Invasion’ Bets After U.S. Raid

The platform says the U.S. operation to extract Nicolás Maduro did not meet its contract’s definition of an invasion.

Overview

  • Polymarket ruled that only U.S. military action intended to establish control over Venezuelan territory would count, excluding the capture-and-extract mission.
  • Traders accused the platform of narrowing terms after the fact, with forum posts blasting an arbitrary decision that wiped out expected winnings.
  • Newly created anonymous accounts placed wagers of roughly $32,000–$34,000 on Venezuela outcomes and saw paper gains of about $400,000 before the ruling reversed them.
  • Rival prediction market Kalshi highlighted its prohibition on insider trading and restrictions on government employees participating in related markets.
  • Despite the dispute, Polymarket added contracts on potential U.S. action in countries such as Colombia and Cuba, as Venezuela-related markets drew about $10.5 million in wagers this year.