The U.S. Department of Justice is investigating cryptocurrency prediction platform Polymarket for accepting trades from U.S. users, according to people familiar with the matter. The Federal Bureau of Investigation (FBI) issued a search warrant for Polymarket CEO Shayne Coplan and seized his cell phones and electronic devices.
Under a 2022 agreement with the Commodity Futures Trading Commission (CFTC), Polymarket will block U.S. traders from trading on the platform.
Polymarket said in a statement that the company would "stand up for ourselves and our community" and accused the FBI's search of being politically motivated. "Polymarket is a fully transparent prediction market that helps ordinary people better understand the events that matter most to them, including the election."
The company, led by Coplan, reached an enforcement settlement with the CFTC two years ago and paid a $1.4 million fine in addition to agreeing to block U.S. users. The company said in recent weeks that it has taken additional steps to verify and block users it suspects may be U.S. citizens or reside in the United States. (Bloomberg) #zachxbt