The U.S. Justice Department is investigating crypto predictions-betting platform Polymarket for allegedly accepting trades from US-based users, according to a person familiar with the matter.
The Federal Bureau of Investigation executed a search warrant on Shayne Coplan, Polymarket’s chief executive officer, and seized his phone and electronics, according to the person who asked for anonymity to discuss non-public matters.
Under an agreement with the Commodity Futures Trading Commission reached in 2022, Polymarket is to prevent US-based traders from making transactions on the platform.
Polymarket surged in popularity in the lead up to the Nov. 5 US presidential elections, touting itself as a more accurate predictor of political outcomes than traditional polling. The platform’s users are able to wager an unlimited amount of money on their favored candidates, whereas competing platforms have betting limits.
