F.B.I. Targets Polymarket Founder’s Residence
On Wednesday morning, federal authorities conducted a raid at the New York City residence of Shayne Coplan, the founder of Polymarket, a betting platform known for hosting odds on high-profile events, including presidential elections. Three individuals familiar with the situation revealed that the search was part of an ongoing criminal investigation led by the Federal Bureau of Investigation (F.B.I.) and the U.S. attorney’s office for the Southern District of New York. This probe is reportedly examining whether Shayne Coplan, 26, operated Polymarket as an unlicensed commodities exchange, potentially violating U.S. regulations on such practices.
During the raid, agents confiscated Shayne Coplan’s electronic devices, including his phone, as part of the investigation. A law enforcement official confirmed that “court-authorized law enforcement activity” took place at Coplan’s residence, although further details were not provided. The raid reflects heightened scrutiny on online platforms that allow U.S. users to participate in betting markets, especially those skirting regulatory requirements.
Polymarket’s Legal Troubles and Ongoing Concerns
Polymarket came under regulatory fire in 2022 when it settled with the Commodity Futures Trading Commission (C.F.T.C.) for operating without proper registration. The company agreed to halt services for U.S.-based users and paid a substantial fine of $1.4 million as part of the settlement. Despite these measures, it was allegedly well-known that U.S. users could still access Polymarket using virtual private networks (VPNs), a loophole discussed on social media and hinted at by former employees.
This regulatory gray area in election betting has been a longstanding issue in the United States, where such practices face unclear or restrictive legal frameworks. Polymarket, which gained traction during the presidential election campaign, provided odds that often contradicted traditional polling, notably projecting former President Donald J. Trump as having a significant lead over Vice President Kamala Harris.
The F.B.I.’s focus on Polymarket and its founder signifies an effort to ensure compliance with federal laws governing commodities exchanges and related financial activities, especially those with the potential for widespread public participation.
Political Reactions and Accusations
The raid prompted immediate reactions from Polymarket and its supporters. A company spokesperson suggested that the investigation was politically motivated, characterizing it as “obvious political retribution by the outgoing administration.” The timing of the raid has fueled discussions about potential biases or motives related to its execution.
Shayne Coplan himself responded to the incident with a post on X (formerly Twitter), accusing the Biden administration of targeting entities it perceives as politically affiliated with opponents. He described the move as a “last-ditch effort” by the administration to suppress certain businesses. This claim, however, has not been substantiated with further evidence.
Representatives from the F.B.I. and the U.S. attorney’s office declined to comment further on the matter. Previous reports by Bloomberg and The New York Post had also covered some aspects of the ongoing investigation, underscoring the public and media interest in the unfolding case.
As investigations continue, the implications for Polymarket, Shayne Coplan, and other platforms operating in this legal gray area remain significant, potentially shaping the future landscape of online betting and regulatory enforcement in the U.S.
