The United States Federal Bureau of Investigation (FBI) conducted a raid on the residence of Polymarket CEO Shayne Coplan, seizing his phone and electronics.
Polymarket is a leading prediction market platform that allows users to bet on the outcome of real-world events related to politics, sports, and pop culture. The platform also provides real-time probabilities of event outcomes, enabling users to profit from their knowledge and insights.
The prediction platform gained massive popularity during the United States presidential election, attracting billions of dollars on the final result. Polymarket users largely anticipated Donald Trump as the probable winner, which proved accurate.
Law Enforcement Raids Coplan’s House
According to a New York Post, U.S. law enforcement officials woke Coplan up at 6 a.m. and confiscated his phone and electronic devices. A Polymarket spokesperson confirmed the unexpected incident.
During the incident, Coplan was reportedly not given an explanation about the raid, though the source speculates it may be politically motivated, as Polymarket successfully predicted a clear Trump victory over the Democrat Kamala Harris, contrary to mainstream polling predictions.
Bloomberg later revealed that the U.S. Department of Justice (DOJ) was investigating Polymarket over claims that it permitted U.S. users to access its platform.
A Polymarket spokesperson stated that this is a case of political retaliation by the departing administration against the prediction market platform for offering a market that accurately predicted the outcome of the 2024 presidential election. The spokesperson further stated that the platform is an open and fully transparent prediction platform designed to help individuals gain clearer insights into important events, including elections.
Polymarket Reaches a $1.4M Settlement
Before the prediction platform gained popularity, it agreed to a $1.4 million settlement with the U.S. commodities regulator in January 2022 for hosting over 900 event-based binary options markets without proper registration.
Following a 2022 settlement, Polymarket is required to prevent U.S. individuals from accessing its services.
Meanwhile, the platform recorded approximately $3.7 billion worth of bets on its 2024 presidential election winner market, sparking criticism over its influence.
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