Author: Ariel, CryptoCity

Taiwanese Nationals Arrested for Betting on Local Elections via Polymarket

Taiwanese authorities have made the nation’s first arrests in connection with cryptocurrency betting on the upcoming 2026 local elections. The Yunlin District Prosecutor’s Office, in collaboration with law enforcement, recently busted an illegal gambling ring, apprehending two individuals, identified by their surnames Lu and Tong, who placed bets on the blockchain prediction platform, Polymarket.

According to multiple Taiwanese media reports, police investigations revealed that the two individuals used cryptocurrency wallets to wager US Dollar Coin ($USDC) on the “2026 Taiwanese Local Elections: Party Winner” market on Polymarket. This market specifically targeted the local elections scheduled for November 28th, 2026, with bets placed on the winning political party. Such activities are deemed to violate Taiwan’s Election and Recall Act and the Criminal Code’s gambling provisions.

Authorities emphasize that betting on election outcomes has the potential to sway public opinion and compromise the integrity of the electoral process. However, given that the arrested individuals had no prior criminal records and confessed to their involvement, prosecutors have opted for deferred prosecution. Nevertheless, law enforcement officials noted the inherent challenges in tracing Polymarket users due to the platform’s overseas IP address and high degree of anonymity. Investigations are ongoing to identify and apprehend additional accomplices.

Police Trace Crypto Flows to Unmask Anonymous Bettors

The breakthrough in this case began with routine online patrols, where investigators identified illicit election gambling activities on Polymarket. Earlier reports, including one from Chain News on February 26th, had already highlighted the emergence of such betting markets.

• Related Report: 17 Taiwanese Bettors Arrested for Participating in Polymarket Presidential Election Markets

Following the arrests, attorney Huang Mu-han commented to United News Network on the investigative complexities, particularly in identifying gamblers. He explained that technological forensics involve scanning IP addresses of users accessing the website to determine if they originate from Taiwan. Once identities are confirmed, search warrants can be issued to seize mobile phones and other devices.

Huang Mu-han clarified that engaging in public online gambling constitutes a criminal offense. Under Article 4 of Taiwan’s Criminal Code, if any part of a criminal act or its outcome occurs within the Republic of China’s territory, it is considered a crime committed within its jurisdiction, granting Taiwan absolute judicial authority.

Police further cautioned that many bettors mistakenly believe using cryptocurrencies and foreign websites provides immunity from detection. However, law enforcement can still ascertain the real identities of bettors by meticulously tracing cryptocurrency transaction flows.

Clear Legal Framework: Do Not Test the Law

Taiwan’s Public Officials Election and Recall Act, Article 103-1, clearly states: “Those who gamble on the outcome of an election or recall using telecommunication equipment, electronic communications, the internet, or other similar methods, involving property, shall be sentenced to imprisonment of up to six months, detention, or a fine of up to NT$100,000.”

For those who establish gambling operations based on election or recall outcomes, the penalties are far more severe: imprisonment of up to five years, which may be combined with a fine of up to NT$500,000. Regarding the US-based Polymarket platform, lawyer Lin Shang-lun previously shared that since it lacks any physical presence in Taiwan (service providers, employees, etc.), Taiwanese judicial authority is unlikely to reach Polymarket itself.

CryptoCity reminds readers: Police have mastered cryptocurrency flow tracing techniques, and the statutory penalties for operating election gambling rings are significantly harsher than those for general gambling cases. Citizens are strongly advised not to test the law.

(The above content is an authorized excerpt and reproduction from our partner, CryptoCity. Original link.)