Prediction market stops taking bets on search for missing U.S. military service member after Rep. Moulton's criticism

A prediction market accepting bets on the search for a U.S. military service member still missing from a fighter jet shot down in the Iran war Friday has been shut down by Polymarket for violating its standards.

Iran shot down two U.S. military planes in separate attacks Friday, with one service member rescued and at least one missing, in a dramatic escalation since the war began nearly five weeks ago. A U.S. military search-and-rescue operation was underway, according to officials.

Polymarket, which has turned prediction markets into an increasingly popular phenomenon alongside rival operator Kalshi, disclosed it blocked the wagering on the search for the missing military member about two hours after U.S. Rep. Seth Moulton posted a note of outrage on social media.

“This is DISGUSTING,” wrote Moulton, a Democrat from Massachusetts who was in combat in the Middle East while serving in the Marines.

In its response on the social platform X, Polymarket said Friday that it removed the market cited by Moulton and was investigating how it slipped through the safeguards set up to protect its integrity standards.

Polymarket has recently been coming under increasing scrutiny, including calls for tougher regulation of prediction markets.

The criticism has mounted after some of its users made substantial bets ahead of the war in Iran and the military action in Venezuela earlier this year.