Polymarket CEO’s Apartment Raided by FBI Amid Market Manipulation Allegations

In a dramatic turn of events, FBI agents raided the New York apartment of Polymarket CEO Shayne Coplan on the morning of November 13. According to a spokesperson for the decentralized prediction market platform, the raid was a blatant act of “political retaliation” by the Biden administration. Agents reportedly demanded access to Coplan’s electronic devices, including his smartphone.

The alleged motive behind this raid stems from Polymarket’s accurate prediction of Donald Trump’s victory in a prior U.S. presidential election, a forecast that reportedly ruffled feathers in political circles.

“Political Retaliation” and Allegations

An anonymous source familiar with the matter claimed the FBI could have obtained the information through legal channels, but instead staged the raid to cast Polymarket in a negative light. The source further speculated that authorities aim to build a case accusing Polymarket of market manipulation and skewing public opinion through its betting activities. Notably, no arrests were made during the raid.

Ongoing Investigation by the U.S. Department of Justice

Hours after the raid, Bloomberg reported that the U.S. Department of Justice is now investigating Polymarket for allegedly allowing U.S. citizens to participate in betting activities, which is prohibited in the country. While Polymarket had measures in place to restrict access, such as location checks, some users reportedly bypassed restrictions using VPNs.

During the U.S. presidential election, Polymarket handled wagers amounting to $3.7 billion, drawing scrutiny over its potential influence on the electoral process. Authorities are now investigating the extent of this impact.

This is not Polymarket’s first brush with the law. In January 2022, the platform paid a $1.4 million fine to the U.S. Commodity Futures Trading Commission (CFTC) for offering over 900 event-based binary options markets without proper registration.

What’s Next for Polymarket?

As investigations continue, the raid raises significant questions about the balance between regulation and innovation in decentralized platforms. Critics argue that targeting Polymarket may signal broader government efforts to crack down on the growing influence of blockchain-based prediction markets.