TLDR
- Congress expanded its prediction market investigation to Crypto.com, Hyperliquid Labs, and PredictIt.
- A U.S. soldier allegedly earned over $409,000 from bets linked to classified military information.
- Lawmakers are examining a reported $1.1 billion Hyperliquid short that generated more than $150 million in profit.
- Crypto.com must provide details on identity checks, suspicious trading controls, and government-linked accounts.
- The platforms have until Oct. 13 to submit records as Congress considers further action.
House Oversight Chairman James Comer expanded an insider trading investigation on Sept. 29. He requested records from Crypto.com, Hyperliquid Labs, and PredictIt operator Aristotle Exchange. The committee wants records on identity checks and suspicious trading controls.
Military Betting Case Drives Wider Review
The inquiry follows an April federal indictment against U.S. Army Master Sgt. Gannon Ken Van Dyke. Prosecutors allege he used classified information about Operation Absolute Resolve to place Polymarket wagers. They say the trades produced $409,881. Van Dyke has pleaded not guilty.
The committee opened its review in May, contacting Polymarket and Kalshi. Lawmakers say they received nearly 1,000 documents and five briefings. Recent CFTC warnings on prediction markets focused on market controls where traders may hold information unavailable to others.
Crypto.com Records Requested by Congress
Congress asked Crypto.com to explain differences between identity checks on its global exchange and Crypto.com Derivatives North America. The request also seeks records on geographic restrictions, suspicious activity referrals, and internal rules covering employees who receive advance knowledge of listings, custody decisions, or regulatory matters.
The committee also wants information about government employees or officials who traded contracts tied to crypto regulation. It asked Crypto.com to identify relevant policies for customers whose official duties could give them access to nonpublic information.
Hyperliquid received a separate request after lawmakers cited a reported $1.1 billion leveraged short on Bitcoin and Ether. The position reportedly opened about 30 hours before President Trump’s October 2025 tariff announcement and later generated more than $150 million. Separately, Kalshi denied reports of a CFTC probe into trading patterns on its Ether perpetual market.
PredictIt Asked About Trading Controls
PredictIt must provide records on identity checks, suspicious trading reviews, political event contracts, and referrals to regulators. Congress also asked how removing its per-contract trader limit under CFTC Letter No. 25-20 changed liquidity, trading scale, or monitoring.
The committee set an Oct. 13 deadline for the requested material and also wants a PredictIt staff briefing. CFTC crypto guidance shows regulators are updating oversight tools as digital-asset markets broaden.
The committee said it will review the new records before deciding whether further congressional action is needed. The requests cover documents dating from Jan. 1, 2024, through the present.
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