Foreign media (CoinDesk) and (The Block) quoted people familiar with the matter as saying that the U.S. Commodity Futures Trading Commission (CFTC) has issued a subpoena to the cryptocurrency exchange Coinbase, requesting information about Polymarket, especially Coinbase users and this prediction market. Platform interaction records.
The news pointed out that Coinbase has recently sent a letter to users to explain the relevant details. According to a screenshot shared by Ethereum commentator Eric Conner, Coinbase wrote in the letter:
We would like to inform you that Coinbase has received a subpoena in connection with the case above (Polymarket) requesting general user information, including data related to your account.
The email was titled "CFTC Subpoena Notice: Coinbase User Announcement in Polymarket Case (C9453)" and was sent from Coinbase's official email address "civil.subpoenas@coinbase.com". The letter emphasized that users do not need to take any action, and also stated that Coinbase may not need to provide any user information.
A Coinbase spokesperson responded: “When required by law, we may be required to share legally requested information with governments. However, we work hard to narrow requests that are overly broad or vague and withhold information when necessary, especially when When the request does not meet legal requirements."
The rise of Polymarket and regulatory pressure
As a decentralized prediction market application, Polymarket has rapidly emerged on the eve of the 2024 US election and has become a popular platform in the currency circle. Although Polymarket has geo-restrictions in place to prevent U.S. users from placing bets, the platform's cumulative trading volume in 2024 exceeded $9 billion.
However, Polymarket has long been on the radar of U.S. regulators. In 2022, the platform was investigated by the CFTC for allegedly providing illegal Binary Options (Binary Options) contracts, and finally agreed to pay a fine of US$1.4 million, close the non-compliant market, and take measures to prevent US users from using it. the platform.
Even so, it’s not uncommon for U.S. users to use VPNs to bypass restrictions.
The CFTC has always strictly regulated prediction markets. For example, Kalshi, one of the few compliant platforms in the United States, once launched a legal battle with the CFTC because it wanted to list contracts related to the U.S. election. The latter was concerned that such markets might affect the election results. It caused an unfair impact, but the lawsuit ended with the CFTC losing.
This is not the first time Polymarket has been investigated by U.S. authorities. In November 2024, the FBI raided the New York City home of Polymarket CEO Shayne Coplan and confiscated his cell phone and electronic devices. Shayne Coplan is currently facing a Justice Department investigation that he believes is politically motivated.
As the 2024 U.S. presidential election season heats up, Polymarket's trading volume has reached a new high, with a total bet amount of more than $3.7 billion, and the number of active traders exceeded 314,500 in December.
"Coinbase receives a subpoena from the US CFTC! Requesting access to user interaction records with Polymarket" This article was first published on (Block Guest).