The U.S. Department of Justice has initiated an investigation into Polymarket, suspecting the platform allows U.S. citizens to place bets, potentially violating national laws.
Purpose of Investigation
Polymarket is a cryptocurrency prediction platform where users can bet on real-world events, including elections. In 2022, it settled with the U.S. Commodity Futures Trading Commission, paying a $1.4 million fine and agreeing to restrict U.S.-based user access. Despite these measures, recent information suggests U.S. citizens may still access the platform, prompting DOJ’s investigation to assess Polymarket’s compliance with U.S. laws.
Industry Reaction
The investigation has provoked strong reactions within the cryptocurrency industry. Coinbase CEO Brian Armstrong criticized the DOJ’s actions, suggesting the probe might be politically motivated. Expressing via social media, Armstrong contended the investigation underscores Polymarket’s influence in the prediction markets sector.
Polymarket’s Response
Polymarket quickly responded, labeling the DOJ’s actions as a politically motivated effort to target companies associated with opposition figures. CEO Shayne Coplan described the situation as a 'last-ditch effort' by the current administration. A platform spokesperson stated that Polymarket offers a fully transparent market, aiming to provide valuable insights without swaying public opinion.
Despite the allegations and investigation, Polymarket remains confident in its mission to offer users predictions on real events, asserting it does not aim to exert political influence.
