On November 13, 2024, the FBI raided the home of Shayne Coplan, the CEO of Polymarket, a well-known decentralized prediction platform, in the early morning. The FBI seized Coplan's cell phone and other electronic devices in the early morning hours, sparking controversy and speculation about the FBI's motives.

According to sources, law enforcement officers arrived at Coplan's New York City residence at approximately 6:00 a.m. ET and demanded that he hand over his electronic devices. The raid prompted public comments from Polymarket representatives and anonymous sources, as well as accusations that the operation was politically motivated.

Polymarket accuses Biden administration of political retaliation

In response to the raid, a Polymarket spokesperson said it was "clearly political retaliation", alleging the move was orchestrated by the outgoing Biden administration. Polymarket was targeted for its "correct prediction" of a landslide victory for former President Trump in the 2024 presidential election, a spokesman said.

Representatives of Polymarket stressed that the platform operates transparently and does not charge any fees, participate in transactions or limit access to data. "We charge no fees, hold no trading positions, and allow global observers to freely analyze all market data as a public service," the spokesperson said, emphasizing the company's commitment to transparency and its role in helping the public understand global events. aspects of the role.

Polymarket CEO Shayne Coplan said: "The current administration will pursue a last-ditch effort to go after companies they believe are linked to political opponents. We are deeply committed to non-partisanship and today is no different, but the incumbents should do some soul-searching and Recognizing that a more pro-corporate, startup-friendly approach could change their fortunes this election.”

Ritual political drama and media manipulation

A source close to the matter told (The New York Post) the raid was purely a “political drama” and said the government could have asked Coplan to hand over its electronic equipment through its legal representation. "However, they staged so-called raids so that they could leak it to the media and accomplish obvious political purposes."

There is speculation that the government may be investigating Polymarket for market manipulation, accusing the platform of potentially "manipulating" its forecasts to support Trump's campaign. However, the allegations have not been proven and no formal charges have been filed against Coplan or Polymarket.

Presidential election betting leads to surge in Polymarket influence

An estimated $3.7 billion is being staked on the 2024 U.S. presidential election, and the platform's popularity and influence have drawn criticism for its potential role in shaping public opinion and even influencing voter behavior.

While U.S. residents are banned from placing bets on Polymarket due to regulatory restrictions, there are reports that some people are using virtual private networks (VPNs) to hide their locations to bypass restrictions. Polymarket allegedly took steps ahead of the election to ensure that major betting players, known as the big players, were based outside the United States. Scrutiny over the platform’s user base has also heightened concerns about Polymarket’s role in international markets and its potential impact on domestic political events.

The previous settlement with the CFTC

The investigation is not the first time Polymarket has faced regulatory challenges. In January 2022, the platform reached a $1.4 million settlement with the U.S. Commodity Futures Trading Commission (CFTC) for failing to obtain registration to offer more than 900 event-based binary options. The settlement signals the government’s intention to closely monitor decentralized prediction markets.

As the story continues to unfold, Polymarket and Coplan's legal teams are expected to defend their positions and may challenge the legal basis for the raids and further actions by federal agencies. Currently, the incident raises uncertainty about the intersection of decentralized technology, regulatory oversight, and political influence.

This article The FBI raided the home of Polymarket CEO Shayne Coplan in suspected political retaliation first appeared on Chain News ABMedia.