Trouble after the election! FBI visits Polymarket CEO's home for investigation. Is it political retaliation?

Polymarket predicts Trump's victory, CEO's residence raided after election

After successfully predicting the outcome of the US presidential election, Shayne Coplan, the 26-year-old CEO of the popular cryptocurrency prediction platform Polymarket, was raided by the Federal Bureau of Investigation (FBI) on the morning of November 13th. According to the New York Post, Coplan's apartment in the SoHo district of New York was searched by law enforcement officers at 6 am that day, and his phone and electronic devices were confiscated. Sources say that Coplan was not arrested or charged with any crime.

It is reported that law enforcement officers did not provide Coplan with clear reasons for the search. A source close to the matter said that the government may be trying to accuse Polymarket of market manipulation, manipulating forecast results to support Trump. However, the source emphasized that these accusations are unfounded, calling this action "the worst political drama".

Polymarket insists on innocence, accusing political motives.

Regarding this sudden search, a Polymarket spokesperson stated that it is "clear political retaliation" because the platform accurately predicted the outcome of the 2024 presidential election, which greatly differed from traditional polls. The spokesperson emphasized:

"Polymarket is a completely transparent prediction market that helps ordinary people better understand the most important events to them, including elections. We do not charge any fees, do not hold any trading positions, and allow global observers to analyze all market data as public assets."

Insiders also questioned the enforcement agency's approach, believing that they could have requested the devices through Coplan's lawyer instead of conducting a raid in the early morning. Coplan himself also posted on social media X, 'New cell phone, who lost it?' seemingly indirectly responding to the incident.

Facing regulatory challenges, Polymarket emphasizes compliance

It is worth noting that Polymarket reached a protocol with the Commodity Futures Trading Commission (CFTC) in 2022, agreeing to block US users from trading and paying a fine of $1.4 million. However, according to the New York Post, US users can still bypass the restrictions and continue trading on the platform through a virtual private network (VPN). Bloomberg also reported that the US Department of Justice is investigating whether Polymarket allows US users to trade.

Image source: CFTC Polymarket reached a protocol with CFTC in 2022 to prevent US users from using it.

In addition, the French National Gambling Authority (ANJ) is also considering blocking the services of Polymarket because the platform may not comply with the country's legal regulations. A spokesperson for Polymarket said that the company is taking measures to ensure compliance with regulatory requirements in various countries and plans to expand its business scope in the future, including possible token issuance.

The industry's response has been mixed, attracting attention to future development.

This incident has triggered widespread follow-up in the industry. Some analysts believe that the actions of law enforcement agencies may have a cicada effect on the prediction market, especially during politically sensitive periods. However, it has also been pointed out that regulatory authorities have a responsibility to ensure the fairness and legality of the market, and to prevent market manipulation and illegal transactions.

Coplan said in an interview that the raid was frustrating and described it as the "last-ditch effort" against companies related to political opponents. He emphasized that the company is committed to being a non-partisan source of information and will continue to provide users with reliable prediction services. A spokesperson for Polymarket also stated that they are prepared to defend themselves and the community, continuing to help ordinary people understand important world events.

Image source: X Shayne Coplan expresses disappointment at being searched by the FBI

Currently, the FBI has not commented on the matter. The industry will closely follow the development of Polymarket and the potential impact of this incident on the prediction market and Crypto Assets industry.

Extended reading Polymarket is on fire! Some people have made millions by betting on the election, but why have 86% of users suffered heavy losses? Crazy global election betting market! He bet on Trump's election on Polymarket and made a whopping 16 million. Anything goes, nothing is surprising! Polymarket volume surpassed 1 billion.

After the election, trouble! FBI went to the home of Polymarket's CEO to "check the water meter", is it political retaliation? This article was first published in 'encryption city'