FBI agents conducted a search at the New York residence of Polymarket CEO Shayne Coplan. The probe investigates the platform's operations as an unlicensed commodities exchange.
FBI Search and Allegations
The FBI commenced an investigation after accusations surfaced claiming Polymarket facilitated an unlicensed exchange, allowing US users to place bets. This allegedly breached a 2022 settlement with the Commodity Futures Trading Commission (CFTC). Polymarket gained notoriety during the 2024 US presidential election by offering higher odds on Donald Trump's victory against Kamala Harris, markedly different from public opinion polls.
Shayne Coplan's Reaction
Shayne Coplan expressed his frustration with the government's actions via social media, stating that the Biden administration was making a last-ditch effort to target companies linked with political opposition. He emphasized Polymarket's commitment to non-partisanship.
Polymarket Trading Volume Drops
Polymarket experienced a sharp decline in trading activity following the 2024 elections. Trading volume decreased by 84%, and daily active users dropped by 53% after Trump's victory was confirmed. The platform saw $3.7 billion in election-related bets but experienced a significant slowdown afterward.
Shayne Coplan remains optimistic about the future of American entrepreneurship despite the ongoing FBI investigation.
