Prediction Market Removes Wagers on Cornell Assault Case Charges

Polymarket has removed a prediction market contract that allowed users to wager on whether any of the seven men accused of sexually assaulting or exploiting a Cornell student in 2024 would be charged with a felony sex crime. The market, which opened on September 30 and was scheduled to close on January 31, had generated over $450,000 in volume before its removal.

A spokesperson for Polymarket stated that while the market addressed whether the government would take action – a process deserving scrutiny, particularly in a case of such serious concern – the company ultimately decided to remove it after hearing public feedback. The company's U.S. exchange is regulated by the Commodity Futures Trading Commission, which prohibits trading related to unlawful activities.

The contract drew criticism online, with some users characterizing it as degrading. An online petition launched by the advocacy organization UltraViolet specifically called out celebrity endorsers, including Philadelphia 76ers star LeBron James, for their association with Polymarket. James, along with other celebrities like Derek Jeter, Eli Manning, Sue Bird, Spike Lee, Craig Robinson, John Leguizamo, Alexandra Daddario, and Emily Ratajkowski, appeared in a recent Polymarket commercial.

The case involves a lawsuit filed last month by a woman, identified in court documents as Jane Doe, who alleges that seven fraternity members sexually assaulted or exploited her in October 2024. She also claims that Cornell University mishandled her complaints. The accused men have denied the allegations, asserting that their interactions were consensual or that they were not involved.

Prediction markets enable users to trade on the outcomes of future events. Polymarket has also hosted other markets, including one on whether Cornell president Michael Kotlikoff would be out of his position by October 31, which had garnered over $10,700 in volume. Previously, Polymarket's international platform saw controversy when a U.S. Army sergeant was indicted for betting on the capture of Venezuelan President Nicolás Maduro. In April, reports also surfaced of substantial bets being placed on a U.S.-Iran ceasefire shortly before President Donald Trump announced one, raising concerns about insider trading.