A UAE-based investor has taken aggressive legal and regulatory steps against Polymarket, the decentralized predictions platform, over the alleged unlawful withholding of funds and what he describes as “negligent and evasive” handling of a serious dispute.
The user, Mohmed Al Bark, says Polymarket has failed to return funds after a disputed market outcome and ignored multiple formal communications, including a legal demand. In response, he is filing complaints with UAE authorities and pushing for regional enforcement action.
According to sources close to the case, a regulatory case file has been prepared and submitted, citing evidence of user deception, mishandled resolutions, and non-responsiveness from the platform’s legal and compliance teams.
“Polymarket’s silence and vague responses don’t just indicate poor service—they raise questions about legal accountability. They’re about to face the consequences in one of the most tightly regulated Web3 markets,” Al Bark told reporters.Escalation Includes Legal Filings and Platform Blacklisting
Al Bark, who claims ties to senior officials in the UAE Consumer Protection division and regulatory agencies like TDRA and VARA, says a formal case file has already been opened. He’s now pursuing a multipronged approach that includes:
- A fraud complaint with UAE Consumer Protection
- Regulatory filings with the Virtual Assets Regulatory Authority (VARA)
- Warnings issued to UAE blockchain event organizers, accelerators, and investors
- Technical and legal measures to block access to Polymarket within the UAE
Al Bark alleges that Polymarket’s internal appeals process is opaque and unresponsive and that the platform has provided no substantial legal response despite multiple attempts to escalate the matter.
“They’re not above the law just because they run on-chain,” he said. “They’re responsible for how money is handled on their platform.”Implications for Web3 Compliance in the Gulf
With the UAE continuing to position itself as a global leader in digital asset regulation, platforms operating in the region face increasing pressure to meet local compliance standards. A regulatory complaint or block in the UAE could set a precedent for how decentralized platforms are treated when they ignore dispute resolution responsibilities.
Polymarket has not commented publicly on the matter as of this writing.
