DoJ Probes Polymarket as FBI Raids Founder’s Home Over US Customer Access

DoJ Launches Investigation into Polymarket’s US Operations

Crypto prediction market Polymarket faces renewed regulatory scrutiny.

The Department of Justice has initiated an investigation into the platform’s alleged acceptance of bets from US-based customers.

The platform drew attention when its users strongly favored Donald Trump in election-related predictions, contrasting with mainstream forecasts.

FBI Raid on CEO’s Residence

Federal agents executed a search at the residence of Shayne Coplan, Polymarket’s 26-year-old CEO.

The FBI confiscated Coplan’s phone during the operation, though no arrest was made.

Coplan responded to the raid with apparent nonchalance, posting on X: "New phone, who dis?"

Regulatory History and CFTC Settlement

This investigation follows a previous settlement with the Commodity Futures Trading Commission (CFTC).

Polymarket agreed to pay a $1.4 million penalty and block access to US users as part of that settlement.

Allegations of Market Manipulation

Recent reports by Fortune have highlighted concerns about wash-trading (trading with oneself to create artificial market activity) on the platform.

A leaked email from a Kalshi growth executive allegedly attempted to alert journalists about wash-trading and money laundering activities at Polymarket.

Coplan’s Response to Allegations

Coplan characterized the investigation as a "last-ditch effort" by the current administration targeting companies perceived as aligned with political opponents.

He maintained Polymarket’s non-partisan stance, stating: "We are deeply committed to being non-partisan, and today is no different."

The CEO suggested that a more supportive approach to businesses and startups might have led to different election outcomes for the incumbents.

Competitive Tensions Surface

The leaked email involving a Kalshi executive has introduced additional complexity to the situation.

The executive’s social media account has since been set to private following the email’s circulation.

While these allegations continue to surface, no independent verification of the email’s contents or claims has been established.

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