FBI agents have conducted a raid on the residence of Polymarket CEO Shayne Coplan, seizing his phone and electronics as part of a criminal investigation involving the U.S. Attorney’s office for the Southern District of New York. This operation took place just one week following the recent U.S. Presidential elections.
Allegations of Political Motivation
According to reports from the NYPost, insiders suggest that the timing and nature of the raid could indicate “political retribution.” Sources indicated that Polymarket, a crypto-powered gambling website, granted U.S. users the ability to place bets in violation of a previous government settlement, which may have raised the eyebrows of federal authorities.
The platform had notably predicted Donald Trump’s victory over Vice President Kamala Harris in the near future, diverging from traditional polling outcomes. An anonymous source commented, “This is obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election.”
Details of the Raid
The raid took place early on a Wednesday morning, around 6:00 a.m. Agents demanded that Coplan surrender his phone and various electronic devices. A close informant characterized the action as “grand political theatre at its worst,” arguing that the FBI could have simply requested the items from Coplan’s lawyer rather than executing a dramatic raid that could generate media attention.
Court Authorization Confirmed
The New York Times reported confirmation from law enforcement that the FBI’s actions were “court-authorized law enforcement activity.” It is important to note that Coplan has not been arrested or officially charged, as stated by a spokesperson for Polymarket. The representative emphasized that Polymarket is committed to being a “fully transparent prediction market,” which aids users in understanding significant events. They highlighted their operational integrity by stating, “We charge no fees, take no trading positions, and allow observers from around the world to analyze all market data as a public good.”
Market Predictions and Financial Backing
Leading up to the election, Polymarket displayed Trump with a 58.6% chance of victory, while Harris’s odds stood at 41.4%. The platform has attracted significant investment, including backing from billionaires such as Peter Thiel, raising approximately $70 million, according to earlier reports from Forbes.
Ongoing Investigations and Previous Troubles
The Department of Justice (DOJ) is also in the midst of a separate investigation regarding Polymarket’s compliance with regulations concerning U.S.-based users placing bets. The site encountered regulatory issues in 2022 when it was fined $1.4 million by the Commodity Futures Trading Commission (CFTC) for failing to register, which subsequently led to a temporary halt in trading activities.