In a raid on Polymarket CEO Shayne Coplan’s house, the FBI seized his equipment amid political vengeance and market manipulation claims.
The recent crackdown on prominent figures in the cryptocurrency industry by both South Korean and US authorities, including the multi-million dollar scam involving South Korean YouTuber “Mr. A” and the raid on Polymarket CEO Shayne Coplan, indicates that digital asset platforms and influencer-led financial schemes are being closely monitored by regulators.
On November 13, the FBI searched the house of Polymarket CEO Shayne Coplan, a blockchain-based prediction market company. Sources said the FBI came at Coplan’s New York City home at 6:00 am Eastern Time and demanded his phone and electronics. The decision is already controversial, with some citing political reasons.
In accordance with the New York Post, federal agents abruptly roused Coplan and subsequently confiscated his personal devices. The FBI did not arrest him and has not released any charges or investigations into Polymarket or its CEO. However, the raid’s timing and approach have aroused concerns, especially after last week’s 2024 US presidential election.
Polymarket’s representative called the incident “obvious political retribution” by the departing Biden administration, fueling conjecture. The representative said, “We charge no fees, take no trading positions, and enable observers from across the globe to study all market data as a public good. We look forward to defending ourselves and our neighborhood and helping regular people comprehend crucial international events.”
After Republican Donald Trump’s stunning election win, this raid has raised questions about Polymarket’s effect on political debate and results.
An unidentified source told the New York Post that the raid was “grand political theater.” They could have asked his lawyer for any of these items, the person said. Instead, they orchestrated a raid to leak it to the media and utilize it politically.
The platform may have affected the US presidential election, say Polymarket critics. The platform’s “Presidential Election Winner 2024” market saw $3.7 billion in bets, reflecting popular interest in the event. Polymarket may have swayed the market toward Trump, but there is no proof.
Legal status and activities have drawn criticism to Polymarket. The site paid the CFTC $1.4 million in January 2022 for conducting over 900 event-based prediction markets without registration. Polymarket lets people gamble on elections, sports, and market movements. Regulations prevent US citizens from betting on the site.
Despite these restrictions, US individuals have apparently wagered on the site using VPNs to hide their location. Polymarket has verified the whereabouts of important players in its marketplaces, especially as the US election neared, to comply with legislation barring domestic involvement.
The New York Post’s unnamed source said that the government may be trying to prosecute Polymarket with market manipulation for its purported Trump leaning. The FBI has neither confirmed or denied these claims, allowing public speculation and dispute. The fact that Polymarket’s prediction market correctly predicted the election result adds to the mystery.
Coplan and Polymarket see this raid as another battle with US authorities. As a worldwide platform for decentralized event prediction markets, Polymarket has frequently found itself at the confluence of innovation and regulation. The platform’s spokesman said their business strategy emphasizes openness and user education.
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