Gushiken Yona
Federal agents raided the Manhattan home of Polymarket CEO Shayne Coplan Wednesday morning, seizing his electronic devices. The predawn operation immediately sparked outrage and accusations of political overreach within the crypto community.
The Justice Department is reportedly investigating Polymarket for allegedly violating a 2022 settlement with the Commodity Futures Trading Commission (CFTC), according to Bloomberg. The platform, which allows users to bet on events using cryptocurrency, had previously paid a $1.4 million fine for operating an unregistered prediction market and agreed to block U.S. customers.
The current investigation appears to focus on whether Polymarket continued accepting trades from U.S. users, potentially circumventing the ban. The raid’s timing, just days after the presidential election, fueled speculation and criticism. Polymarket had drawn attention for its prediction markets, which often favored Donald Trump.
“The fact that the raid happened after the election and at 6 a.m. says everything about how this administration views crypto builders,” Frank Chaparro, host of the “Scoop” podcast, commented on X (formerly Twitter). “In the end, they hate us.”
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Prominent figures in the tech world also weighed in. Coinbase CEO Brian Armstrong, in a now-deleted X post, blasted the administration’s actions. Tesla and SpaceX CEO Elon Musk called the situation “messed up.”
Coplan responded defiantly on X, accusing the administration of targeting companies associated with political opponents and defending Polymarket’s non-partisan stance. “It’s discouraging that the current administration would seek a last-ditch effort to go after companies they deem to be associated with political opponents,” Coplan said.
“We are deeply committed to being non-partisan, and today is no different, but the incumbents should do some self-reflecting and recognize that taking a more pro-business, pro-startup approach may be what would have changed their fate this election,” he added. Coplan highlighted the platform’s value during the election cycle and championed American entrepreneurship, declaring, “In the face of adversity, we build.”
Other commentators in the crypto space defended Polymarket’s predictive accuracy during the election. Mike Nielsen, host of “CryptoEndevr” on YouTube, argued that Polymarket functioned as a more accurate poll than traditional surveys. Ryan Sean Adams, a crypto investigator, expressed alarm over the raid, describing it as “bone chilling” and suggestive of political retribution.
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The scope of the FBI investigation and the specific evidence sought remain unclear. No charges have been filed against Coplan or Polymarket.
The seizure of Coplan’s devices, however, suggests authorities are scrutinizing the platform’s financial transactions, user data, and internal communications. The raid raises questions not only about Polymarket’s future but also about the broader regulatory landscape for prediction markets and the crypto industry as a whole.
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YONA GUSHIKEN
Yona brings a decade of experience covering gaming, tech, and blockchain news. As one of the few women in crypto journalism, her mission is to demystify complex technical subjects for a wider audience. Her work blends professional insight with engaging narratives, aiming to educate and entertain.
