On November 13, law enforcement agents from the US Federal Bureau of Investigation (FBI) searched the residence of Shayne Coplan, CEO of Polymarket, in New York City.
Coplan was reportedly awakened around 6 AM Eastern Time, with FBI agents demanding immediate access to his mobile phone and other electronic devices.
Authorities could have requested Coplan’s devices via his legal representation. However, they opted for a more dramatic tactic, possibly to gain media exposure and fuel political motives.
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Speculations around the raid include claims that the government might aim to build a case against Polymarket, potentially accusing the platform of market manipulation. In particular, investigators could examine whether Polymarket influenced betting results to favor Donald Trump.
The controversy surrounding Polymarket has escalated, especially in light of its recent betting activity. The platform recorded around $3.7 billion in wagers on the “Presidential Election Winner 2024” market. Critics of Polymarket have raised concerns that the platform's betting markets may hold too much influence, especially in high-stakes political events.
Although betting on Polymarket is prohibited for US residents, American users have reportedly found ways to bypass these restrictions using virtual private networks (VPNs). This allows individuals within the US to disguise their locations and participate in the platform’s betting activities despite regulatory limitations.
The outcome of the FBI’s actions remains uncertain, though the investigation has already sparked debate regarding political influence, regulation, and the future of online prediction markets in the US.
In other news, Kaiko has strengthened its leadership in crypto indexing with the acquisition of Vinter. How can this impact the company? Read the full story.
