The United States Federal Bureau of Investigation (FBI) raided the home of Polymarket’s CEO, Shayne Coplan, on Wednesday morning (local time) and seized his phone, as first reported by the New York Post. However, the 26-year-old hasn't been arrested or charged.
Although there is no official confirmation, a Bloomberg report indicated that the Department of Justice is investigating Polymarket, as the platform allegedly allowed US users to bet on events.
US Users Could Bet on Polymarket
Polymarket allowed users to trade event contracts, betting on the outcome of various events using cryptocurrencies. The platform's popularity surged during the recent US Presidential election when its users successfully predicted Donald Trump’s victory.
In a statement to the media, Coplan accused the outgoing Biden administration of the investigation and raid, calling the move political retribution.
“It’s discouraging that the current administration would seek a last-ditch effort to go after companies they deem to be associated with political opponents,” Coplan wrote. “We are deeply committed to being non-partisan, and today is no different, but the incumbents should do some self-reflecting and recognise that taking a more pro-business, pro-startup approach may be what would have changed their fate this election.”
new phone, who dis?
— Shayne Coplan ???? (@shayne_coplan) November 13, 2024
Polymarket does not allow US users to access event contracts and is only available outside the country. It even settled with the US Commodity Futures Trading Commission (CFTC) in 2022, paying $1.4 million and agreeing to block all US residents from accessing the platform. However, it was found that Americans could still place bets on the platform using virtual private networks (VPNs).
Reactions from Industry Leaders
The action against the platform attracted the attention of other crypto leaders. Coinbase’s CEO, Brian Armstrong, criticised the outgoing administration on X, noting that the administration's move would “backfire.” However, he deleted that post.
Deleted my prior tweet until all the facts are in - but doesn’t look good https://t.co/XKpjnevmvk
— Brian Armstrong (@brian_armstrong) November 14, 2024
While the Biden administration remained hostile towards cryptocurrencies, the incoming President Trump is considered pro-crypto. Following his victory, the crypto market is rallying significantly, with Bitcoin surpassing the $90,000 milestone and expected to cross $100,000.
This article was written by Arnab Shome at www.financemagnates.com.
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