The FBI seized the phone and electronic devices of Shayne Coplan, the CEO of cryptocurrency platform Polymarket, early Wednesday morning. The incident came just a week after the platform correctly predicted Donald Trump’s presidential victory. According to sources, law enforcement arrived at the 26-year-old entrepreneur’s Soho home at 6 a.m. and demanded he hand over his devices.
FBI raids the home of cryptocurrency platform Polymarket CEO
The FBI seized the phone and electronic devices of Shayne Coplan, the CEO of Polymarket, during a raid Wednesday morning. The incident came just a week after the platform correctly predicted President Donald Trump’s victory in an election bet. At 6 a.m., police arrived at the 26-year-old entrepreneur’s Soho home at 6 a.m. and demanded he hand over his devices. A source familiar with the matter described the raid as “political theater,” adding that law enforcement could demand what they want through lawyers.
One source said the government could take political action against the highly accurate market forecast predicting a Trump victory. The government could say, “This is market manipulation or a ploy to get Trump to win.” Polymarket is a free public forecasting platform that aims to shed light on events like elections. “We don’t take any fees, we don’t take positions in the markets, and we publish our market data for free,” the spokesperson said. The source familiar with the matter said Coplan was not arrested during the incident.
The platform acted as a key indicator before the official election call
When the polls closed on election night, Polymarket showed the odds of a Trump victory at about 58%. That number began to rise as the night wore on. By 11:43 p.m., about six hours before the Associated Press called the election, the odds had reached 95%. Coplan said in a post on X on Wednesday morning that reports suggested the Trump campaign had predicted their victory from Polymarket’s forecast. A month before the election, prediction markets showed Trump leading Vice President Kamala Harris with a 67% chance of winning. Traditional polls never showed a clear lead, with neither candidate exceeding the margin of error in key swing states.
Coplan called the result “a triumph of prediction markets,” describing the site as “the most accurate way to follow the election.” This election marked the first time Americans could legally bet on the outcome of an election. In early October, a federal court ruled in Kalshi’s favor, allowing election event contracts. This isn’t the first time Polymarket has had trouble with the government, though. It was recently reported that France’s gambling regulator, the ANJ, was facing a possible ban after large amounts of betting were placed on the 2024 U.S. presidential election.
Coinbase CEO criticizes
Coinbase CEO Brian Armstrong has criticized the Department of Justice’s (DOJ) recent investigation into crypto-based prediction market platform Polymarket. Armstrong has said on social media that the DOJ’s actions are politically motivated and could inadvertently strengthen Polymarket’s influence. The ongoing investigation, which includes a search of Polymarket CEO Shayne Coplan’s devices, has sparked widespread discussion in the crypto and technology sectors.
In a post on X, Coinbase CEO Brian Armstrong shared his views on the Polymarket investigation. Polymarket allegedly violated previous agreements with US regulators by allowing US-based users to place bets during the FBI raid. A settlement with the Commodity Futures Trading Commission (CFTC) in 2022 limited Polymarket’s access to US-based investors, and the company paid a $1.4 million fine. However, recent findings suggest that US users may still be using the platform, raising compliance issues.
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