(The Block) cited people familiar with the matter as reporting that Coinbase has received a subpoena from the U.S. Commodity Futures Trading Commission (CFTC) requesting user information related to prediction market company Polymarket.

According to multiple screenshots posted on social media, the U.S. exchange has sent emails to clients to inform them that regulators are investigating. According to a screenshot shared by Ethereum commentator Eric Conner, the email stated:

"We are informing you that Coinbase has received a subpoena in connection with the above case, requesting general customer information, including account information."

The email is titled "CFTC Subpoena Notice: Customer Notification Regarding Polymarket Case (C9453)". The email states that users do not need to take any action and Coinbase does not necessarily need to provide user information.

A Coinbase spokesperson told (The Block):

"In some cases, we may be required by law to share necessary data lawfully requested by the government. When necessary, we will work to narrow overly broad or vague requests to provide a more appropriate response; and in some cases, if If the request is legally insufficient, we may object to providing any information at all."

The CFTC has always taken a strict regulatory stance on the gambling market. For example, Kalshi, one of the few platforms approved to operate in the United States, has been involved in a lengthy legal battle with the CFTC for listing contracts related to U.S. elections, as regulators feared it could unfairly influence the outcome.

However, this is not the first time Polymarket has been investigated by the US government. In 2022, Polymarket reached a settlement with the CFTC for allegedly offering illegal binary options contracts, agreeing to pay a $1.4 million fine and block U.S. users from continuing to access its platform. Separately, in a November law enforcement operation, the FBI searched the New York City apartment of Polymarket CEO Shayne Coplan and seized his cellphone and electronic devices.

Coplan is reportedly facing an investigation by the U.S. Department of Justice for allegedly allowing access to its platform to U.S. users, but Coplan believes this is a politically motivated operation.

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