DOJ Investigates Polymarket for Alleged Illegal US User Bets

Key Points:

• DOJ investigates polymarket, and the FBI seizes the CEO’s electronics over alleged US user violations!
• Claims FBI search is politically motivated, vows to fight.

The US DOJ investigates Polymarket for Alleged Illegal US User Bets Polymarket, one of the most popular crypto predictions-betting platforms, for allegedly permitting users based in the US to create bets on its platform despite a settlement with the CFTC.

DOJ Investigates Polymarket for Allowing US Bets

According to Bloomberg, the FBI recently executed a search warrant on Polymarket CEO Shayne Coplan, seizing his phone and all electronics as part of the probe.

In 2022, Polymarket settled with the CFTC to block U.S. users from accessing its website and mobile application. However, before the Nov. 5 U.S. presidential elections, the platform’s popularity took over as it claimed to be a more accurate alternative to traditional polling. On Polymarket, users can, for example, bet unlimited amounts on their favourite political candidates, unlike the other platforms that cap bets.

Read more: Polymarket Token Airdrop Is Expected After The Success Of The US Election

Polymarket Gains Popularity During 2024 Presidential Elections

In the final days before the election, an inordinately large number of trades, apparently placed by a French high-stakes trader, or “whale,” betting for Trump, raised other concerns. Critics of political prediction markets have questioned whether these high-stakes bets might influence public opinion by creating a false perception of a candidate’s chances and affecting how people vote.

DOJ investigates Polymarket. The firm has issued a statement declaring it would “stand up for ourselves and our community.” The firm has also referred to the FBI search as politically motivated. “Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections,” said the firm.