The FBI seized Polymarket CEO Shayne Coplan's cellphones and electronic devices on Wednesday, the New York Post reported, citing anonymous sources. According to a later report by Bloomberg, Coplan allegedly faced a U.S. Department of Justice investigation for allegedly allowing U.S. users to use its platform.

In early 2022, Polymarket reached a settlement with the U.S. Commodity Futures Trading Commission (CFTC) for offering “event-based binary options.” As part of the settlement, Polymarket agreed to pay $1.4 million, close the non-compliant marketplace and block U.S. users. However, reports indicate that Polymarket’s U.S. users have long used VPNs to bypass restrictions on using the platform and are actively participating in predictions for the U.S. election.

Shayne Coplan confirmed the Justice Department’s investigation in a post on the X platform, saying:

“It’s frustrating that the current administration is trying in a last-ditch effort to crack down on companies they believe are linked to political opponents. We are always committed to remaining neutral, and today is no exception. But those in power should reflect and recognize that adopting a more pro-business and The entrepreneurial approach could change their fortunes in this election.”

Musk, who is on the opposite side of the current government, also left a message under the tweet to express his approval.

According to the (New York Post) report, Shayne Coplan was woken up at home by U.S. law enforcement officials in the early morning, and the other party asked him to hand over his cell phone and electronic devices. Sources say the FBI has not arrested Shayne Coplan.

In the report, an anonymous source from the Polymarket team commented on the FBI's seizure, calling it "the worst kind of political farce." The source also said that "the government may try to accuse Polymarket of manipulating the market to tilt the election in Trump's favor."

The source added:

“This is clearly a political hunt for Polymarket by the outgoing administration because the platform provided a market that accurately predicted the outcome of the 2024 presidential election.”

It is worth mentioning that before the election, bets on Polymarket showed that Trump’s victory rate was much higher than most polls, which showed that Trump and Vice President Harris were neck and neck in support.

Reference sources

Source