FBI Raids Polymarket CEO as DOJ Probes Betting Platform
Federal agents conducted an early morning raid Wednesday at the Manhattan apartment of Polymarket CEO Shayne Coplan, just one week after the cryptocurrency betting platform accurately predicted Donald Trump’s victory over Vice President Kamala Harris in the 2024 presidential election.
FBI agents arrived at Coplan’s Soho residence at 6 a.m., demanding the 26-year-old entrepreneur surrender his phone and other electronic devices. While Coplan was not arrested or charged, the Department of Justice is investigating Polymarket for allegedly allowing US-based users to place bets on the platform, according to Bloomberg.
A Polymarket spokesperson said, “This is obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election.” The betting site had shown Trump with a 58.6% chance of winning on Election Day morning, compared to Harris’s 41.4% odds — a stark contrast to traditional polling data that had indicated a much closer race.
Polymarket describes itself as “a fully transparent prediction market that helps everyday people better understand the events that matter most to them.” The company claims it charges no fees and takes no trading positions.
The platform has drawn additional scrutiny due to its connection to prominent Trump allies, including billionaire Peter Thiel, who reportedly raised approximately $70 million in funding for Polymarket. The site also made headlines when a French trader, known only as “Théo,” earned $85 million in profits from Trump-related bets.
This isn’t Polymarket’s first encounter with regulatory challenges. In 2022, the platform paid the Commodity Futures Trading Commission a $1.4 million penalty for registration failures and suspended US trading operations. Recent allegations of wash-trading — an illegal form of market manipulation — have emerged from crypto research firms, though Polymarket’s terms explicitly prohibit such practices.
The platform is currently under examination by France’s gambling regulator, Autorité Nationale des Jeux, for compliance with French gambling laws. While Polymarket doesn’t officially permit US-based trading, users can reportedly access the site through VPN services.
The FBI and Department of Justice have declined to comment on the raid, while the White House has not responded to requests for comment. Coplan later posted on X: “New phone, who dis?”
Information for this story was found via Bloomberg, Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
