In a recent development, Coinbase has received a subpoena from the US Commodity Futures Trading Commission (CFTC). Accordingly, the CFTC is asking the exchange for “general customer information” related to the Polymarket investigation.
Coinbase has received a Polymarket-related subpoena from the CFTC!
Coinbase has received a subpoena from the CFTC seeking information related to Polymarket, according to sources familiar with the matter. The regulator’s request seeks “general customer information” regarding Polymarket, the blockchain-based forecasting platform that gained notoriety ahead of the November elections. We have a screenshot of an email Coinbase sent to certain users in response to the request. Eric Conner, founder of Ethereum information site ETHHub, shared the image on X.
The message sent by Coinbase said the exchange “may need to submit information” to the CFTC “depending on the legal procedures that may take place in the coming week. Conner would not comment on whether he had used Polymarket’s platform before. A person familiar with the matter confirmed that the CFTC had sent Coinbase a subpoena regarding Polymarket and that the screenshot shared by Conner related to a legitimate request for user information made by the regulator.
Background on Polymarket and the CFTC’s investigation!
As you have been following from Kriptokoin.com, Polymarket was launched in 2020. The platform allows users to bet on the outcomes of various events, including various topics. This includes everything from sports to politics. Last year, a wave of speculation surrounding the US presidential election brought Polymarket into the limelight of the cryptosphere. It has also gained its fair share of attention from outside the industry for predicting Donald Trump’s re-election.
The CFTC claims that the Blockchain-based forecasting platform failed to register its services with the regulator. It therefore brought an enforcement action against Polymarket in 2022. Polymarket reached a $1.4 million settlement with the CFTC. Following this, Polymarket was officially deported for US citizens.
Trump’s victory and the connection to the Polymarket investigation
Shortly after Donald Trump’s victory, the FBI raided the New York apartment of Polymarket CEO Shayne Coplan. A Polymarket spokesperson claimed the move was an act of “political revenge”. Bloomberg News later reported that the raid was related to an investigation by the Justice Department.
The Trump administration will take control of the White House in less than two weeks. Therefore, the scrutiny on cryptocurrency firms could change under his leadership. Still, the subpoena sent to Coinbase suggests that the CFTC is moving forward with an investigation in the meantime.
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