FBI seizes Polymarket CEO’s phone and devices in dawn raid
Spokesperson for prediction trading platform claims investigation represents “political retribution” from Biden administration as chief exec Shayne Coplan takes to X to explain his stance
FBI agents raided the New York home of Polymarket CEO Shayne Coplan yesterday, 13 November, and seized his phone and other electronic devices just one week after the US presidential election.
As first reported by the New York Post, Coplan was awoken in an early morning raid by federal agents, who proceeded to take his devices, although the 26-year-old was not arrested or taken into custody.
Bloomberg News reported that the Department of Justice is investigating Polymarket for allegedly allowing US-based users to bet on markets.
Customers based in the US are not allowed to access Polymarket, although by implementing a VPN those restrictions can be circumvented.
The business halted operations in the US in 2022 after paying a $1.4m penalty to settle charges with the Commodity Futures Trading Commission after failing to register with the body.
However, the group is planning to return to the US market after seeing the likes of Kalshi and Robinhood go live with election contracts.
Polymarket emerged as one of the key players in the election prediction market as Donald Trump beat Kamala Harris at the voting booth.
new phone, who dis?
— Shayne Coplan(@shayne_coplan) November 13, 2024
The company claimed this was one of the reasons for the federal government’s investigation.
In a statement provided to multiple news outlets, a Polymarket spokesperson said: “This is obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election.
“Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections.”
More than $3.6bn (£2.8bn) has been traded on the crypto platform for the winner of the US presidential election, although that figure had been subject to doubt.
A report from Fortune highlighted some research firms had identified wash trading on the platform, calling the total figure into question.
A Polymarket spokesperson said: “Polymarket’s terms of use expressly prohibit market manipulation.”
Taking to X, Coplan said it was “discouraging” that the current Biden administration was making a “last-ditch effort to go after companies they deem to be associated with political opponents”.
He wrote: “We are deeply committed to being non-partisan, and today is no different, but the incumbents should do some self-reflecting and recognise that taking a more pro-business, pro-startup approach may be what would have changed their fate this election.
“Polymarket has provided value to [tens] of millions of people this election cycle, while causing harm to nobody. We’re deeply proud of that.
“I’m also proud to say that the future of America, and in particular American entrepreneurship, has never been brighter. In the face of adversity, we build.”