The prediction market platform Polymarket is under investigation by the U.S. Department of Justice for alleged legal violations.
Government Investigation
Polymarket, a cryptocurrency-based prediction market, settled with the Commodity Futures Trading Commission (CFTC) in 2022 over allegations of allowing U.S. users to participate in commodity betting markets. The settlement included a $1.4 million penalty and restrictions on U.S. user participation.
FBI Raid and Rising Tensions
Tensions between Polymarket and the U.S. government escalated following a recent FBI raid on Polymarket CEO Shayne Coplan's residence. Agents reportedly seized Coplan's phone and other electronic devices following the platform's accurate prediction of Trump's 2024 election victory.
Polymarket’s Response
Polymarket responded by criticizing the investigation as politically motivated. A spokesperson stated that Polymarket operates as a transparent market, without charging fees or taking positions. Critics, however, argue that the platform's large bets could influence public opinion and election outcomes.
The situation around Polymarket continues to unfold, with potential implications for the entire cryptocurrency-based prediction industry.
