Shayne Coplan’s devices seized as Polymarket faces scrutiny over its users’ accurate predictions of Trump’s election victory.
FBI Probes Polymarket CEO Following Trump’s Victory
Federal agents from the FBI have launched an investigation into Polymarket CEO Shayne Coplan, following the platform’s accurate prediction of Donald Trump’s victory in the recent U.S. presidential election. On November 13, agents seized Coplan’s mobile devices during an early morning raid at his Soho property.
FBI Seizes Coplan’s Devices
The raid took place at 6 AM, with agents impounding Coplan’s devices. While no public reasons were given for the investigation, sources believe the FBI may be examining Polymarket’s operations, which has raised concerns among industry insiders.
Trump Victory Sparks Market Predictions
Polymarket, a platform built on Polygon, became the focus of attention when its users accurately predicted Trump’s win. The platform saw over $3 billion in trades during the election cycle, with odds heavily favoring Trump even before the final results. This drew scrutiny from political observers and regulators.
Event Contract Markets Draw FBI Interest
Polymarket’s success during the election has cast a spotlight on other event-based platforms, including Kalshi and Robinhood. Kalshi introduced its own contract after winning a court battle against the Commodity Futures Trading Commission. These platforms allow users to trade on real-world events, and presidential betting contracts gained significant traction this election cycle.
Allegations of Manipulation in Betting Markets
Despite the popularity of event contracts, platforms like Polymarket have faced allegations of manipulation. A New York Times report suggested that a large pro-Trump bettor skewed odds on the platform. The bettor, later revealed to be a French national, defended his trades, claiming they were based on polling data and voting patterns.
Polymarket’s Rising Prominence
Polymarket’s rise to prominence has led to increased scrutiny from regulators worldwide. As users flocked to the platform during the U.S. election, other governments began to take notice. The French government even threatened to ban the platform over concerns that it could be used to influence betting on its own elections.
Potential Fallout for Other Platforms
If the FBI’s probe into Polymarket deepens, other platforms offering similar event contracts, such as Robinhood, could face similar investigations. Industry leaders are bracing for the potential regulatory impact on the sector as it gains more attention from government authorities.
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