Earlier this month, Tolbert finished with the top score in the operator’s 'Millionaire Maker' fantasy football contest, beating more than 105,000 other entries.
Since the competition, DraftKings has been investigating user allegations that Jade worked with her husband Tanner Tolbert to manipulate the contest, with Tanner known to also play DFS.
The operator withheld the $1m prize money from the winner while investigations took place.
Both Jade and Tanner Tolbert entered the maximum number of line-ups allowed in the contest, with 150 entries each – suggesting an attempt to circumvent the maximum entry limit of 150 per contestant.
This would put Jade in violation of the operator’s multi-accounting policy.
The couple both entered the maximum amount of line-ups allowed in the same competition throughout the NFL season.
DraftKings has since announced on Twitter it had "decided to update the standings for several contests" but it would not be commenting further on the matter.
Jade Tolbert is now no longer listed as winner of the 'Millionaire Maker' contest on DraftKings' site; former second-place entrant with the username ‘spclk36’ has been assigned first place.