The FBI searched the home of Polymarket CEO and seized electronic devices, just a week after Trump won the US presidential election. Polymarket said this was "political retaliation".
The FBI raided the New York City apartment of Shayne Coplan, CEO of prediction market platform Polymarket, on the morning of November 13. Law enforcement officials asked Coplan to turn over his phone and other electronic devices. The raid came just a week after Republican candidate Donald Trump won the US presidential election.
A Polymarket spokesperson has spoken out against the raid, calling it “clear political retaliation” from the outgoing Biden administration, given that the platform had provided markets that accurately predicted election outcomes.
Polymarket claims that the platform does not charge trading fees, does not take trading positions, and provides public market data to everyone, acting as an analysis tool for important global events. Polymarket claims to protect its interests and the interests of its user community.
Source: Shayne Coplan
A source familiar with the matter told the New York Post that the raid was a “political stunt.” The source suggested that the FBI may have asked Coplan’s attorney to hand over the electronic devices instead of conducting a high-profile raid. They speculated that the government may be preparing a lawsuit accusing Polymarket of market manipulation and skewing polls in Trump’s favor.
Polymarket, a platform that allows users to bet on the outcome of future events, recorded a staggering $3.7 billion in trading volume on its “2024 Presidential Election Winner” prediction market. This has attracted significant attention and criticism, with some suggesting that the platform may have influenced the election outcome.
While US citizens are prohibited from betting on Polymarket, using a virtual private network (VPN) can help them bypass the restrictions. Polymarket claims to have implemented checks to ensure that those placing large bets ahead of the election are based overseas.
The move comes amid growing tensions between tech platforms and governments over content regulation and influence on public opinion. In January 2022, Polymarket reached a $1.4 million settlement with the U.S. Commodity Futures Trading Commission (CFTC) for offering more than 900 unlicensed event-based binary options markets.
