Polymarket CEO Shayne Coplan was the target of a law enforcement raid Wednesday, the company confirmed to Decrypt, describing him as the victim of “political retribution” after his phone and electronics were seized.
The spokesperson claimed that Coplan is being targeted after Polymarket “correctly called the 2024 presidential election,” after bettors on the crypto prediction market platform correctly picked a White House victory for Republican Donald Trump.
The seizures, conducted Wednesday in Manhattan, New York, were first reported by the New York Post. The publication said that FBI agents conducted the raid, without providing a reason, while the 26-year-old CEO was not arrested.
“Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them,” the spokesperson said. “We charge no fees, take no trading positions, and allow observers from around the world to analyze all market data as a public good.”
While the U.S. presidential election was depicted as a tossup by pollsters heading into Election Day, Polymarket and other prediction markets favored the president-elect over Vice President Kamala Harris. Following Trump’s overwhelming victory, some industry players called it a crystal ball moment, while critics had dismissed Polymarket’s odds as influenced by foreign money.
“New phone, who dis?” Coplan tweeted Wednesday evening following the initial report, apparently confirming the news before the company did.
Officially off-limits for U.S. citizens, Polymarket stopped operating in the U.S. after reaching a $1.2 million settlement with the Commodity Futures Trading Commission (CFTC) in 2022. The company had failed to register with the CFTC, the regulator said. Yet the prediction market can still be accessed by Americans using a virtual private network (VPN).
Bloomberg reported late Wednesday that the Department of Justice is investigating Polymarket for allowing U.S. users to bet on the platform, citing a person familiar with the subject.
After Kalshi’s recent courtroom victory against the CFTC, which had tried to prevent the prediction market from listing political event contracts, several firms jumped into space. Among them were the commission-free trading app Robinhood and the brokerage firm Interactive Brokers.
The CFTC quickly filed an appeal against the Kalshi ruling, pressing forward with efforts to restrict gambling on political elections. Among the CFTC’s qualms, the agency has raised concerns that prediction markets have the potential to undermine the integrity of elections.
On Wednesday, Coplan described the FBI raid as “discouraging,” calling it as a “last-ditch effort” to target companies that may be associated with political opponents on Twitter (aka X). He emphasized that the company is committed to being a non-partisan source of information.
It’s discouraging that the current administration would seek a last-ditch effort to go after companies they deem to be associated with political opponents. We are deeply committed to being non-partisan, and today is no different, but the incumbents should do some self-reflecting…
— Shayne Coplan 🦅 (@shayne_coplan) November 13, 2024
“The incumbents should do some self-reflecting and recognize that taking a more pro-business, pro-startup approach may be what would have changed their fate this election,” Coplan added.
The FBI did not immediately respond to a request for comment from Decrypt.
While unclear if the raid on Coplan could lead to charges, the Polymarket spokesperson said the firm is prepared to defend itself. They said, “We look forward to standing up for ourselves and our community and continuing to help everyday people understand important world events.”
Editor’s note: This story was updated with additional details after publication.
Edited by Andrew Hayward
