In a dramatic early morning move, FBI agents conducted a raid on the Manhattan apartment of Shayne Coplan, CEO of the election-betting platform Polymarket. This action comes just a week after Polymarket made headlines for accurately predicting Donald Trump’s victory in the recent elections.
Political Allegations Cast a Shadow Over Polymarket
The New York Post reported that Coplan was startled awake at 6 am as law enforcement officers demanded access to his phone and other electronic devices. A close associate of Coplan criticized the raid, labeling it as “grand political theater at its worst.” The source suggested that a simple request for information through Coplan’s legal counsel could have avoided the dramatic spectacle.
The raid is speculated to be “politically motivated,” given Polymarket’s prediction of Trump’s triumph over Vice President Kamala Harris on November 5. This forecast sharply contrasted with conventional polling forecasts. The source further implied that the government might be reacting to “liberal media allegations” that accused Polymarket of market manipulation and bias towards Trump.
“This is clear political retribution by the outgoing administration against Polymarket for offering a market that accurately called the 2024 presidential election,” the source asserted. Despite the FBI’s actions, Coplan was neither arrested nor charged. A spokesperson for Polymarket reinforced the company’s dedication to transparency, stating, “Polymarket is a fully transparent prediction market that aids everyday people in understanding significant events, including elections.”
In a light-hearted response to the raid, Coplan took to X (formerly Twitter) with the quip, “New phone, who dis?” indicating his nonchalant stance on the situation.
Investigation Extends to French Authorities
The FBI’s inquiry into Polymarket follows closely on the heels of Coplan’s hint at plans to reintroduce the platform to the US market. Prior to Election Day, Polymarket had shown Trump with a 58.6% likelihood of winning, compared to Harris’s 41.4% odds. Additionally, Coplan’s social interactions with Donald Trump Jr. have sparked further conjecture about the platform’s ties to Trump and his supporters.
In 2022, Polymarket encountered regulatory challenges, halting its US trading operations and incurring a $1.4 million penalty from the Commodity Futures Trading Commission (CFTC) due to registration failures. Since then, the platform has predominantly catered to bettors outside of the United States.
A notable post-election incident involved a mysterious French trader, known by the alias Théo, who reportedly earned $85 million from Trump-related wagers, a figure much higher than previously estimated. Théo maintained that his betting was purely profit-driven, with no intention of influencing election outcomes.
Currently, Polymarket is under the scrutiny of France’s gambling regulator, Autorité Nationale des Jeux, to ensure adherence to local regulations. A spokesperson for the regulator confirmed their awareness of the platform and noted that they are assessing its operations.
In recent developments, the total crypto market cap valuation has experienced a surge, as depicted in the daily chart sourced from TradingView.com.
