Polymarket, a blockchain-powered event prediction platform, is now facing a Department of Justice (DOJ) investigation in the U.S. According to Bloomberg, Polymarket is accused of allowing U.S. users to participate in transactions on the platform, violating previous legal commitments. This marks a significant moment for the crypto prediction market, especially as regulations surrounding digital asset trading are becoming increasingly strict.
Recently, the FBI searched the home of Shayne Coplan, Polymarket’s CEO, and seized electronic devices. This decisive action by authorities follows Polymarket’s previous agreement with the Commodity Futures Trading Commission (CFTC) in 2022, when it paid a $1.4 million fine and committed to blocking U.S. users from accessing the platform.
One key factor heightening tensions is the involvement of whales—large investors—placing significant bets on former President Donald Trump’s victory in the upcoming election. This has raised concerns about potential market manipulation and the possibility of influencing public perception through substantial trades.
In response, Polymarket has voiced a strong commitment to defending its community, suggesting that the investigation may have political motives. They reaffirmed their commitment to providing a transparent prediction market, enabling users to better understand key global events.