The US Department of Justice has launched an investigation into Polymarket, a predictions-betting platform, for allegedly violating its agreement with the CFTC by allowing US-based users to place bets.
DOJ's Investigation into Polymarket
According to Bloomberg, the FBI recently executed a search warrant on Polymarket CEO Shayne Coplan, seizing all electronics as part of the investigation. In 2022, Polymarket settled with the CFTC to bar US users from its website and mobile application.
Polymarket's Popularity during 2024 Elections
Ahead of the 2024 US presidential elections, the platform gained popularity by reportedly providing more accurate predictions than traditional polls. Polymarket allowed users to place unlimited bets on their preferred political candidates.
Politically Motivated Inquiry?
Polymarket has called the FBI search politically motivated. The firm stated it would 'stand up for ourselves and our community,' noting that Polymarket is a fully transparent prediction market.
The investigation into Polymarket raises questions about influence in political predictions and the platform's compliance with US laws. The role of 'whales' and access to US users continues to be closely scrutinized.
