FBI raids Polymarket CEO's home after platform predicted Trump's victory
The Federal Bureau of Investigation (FBI) has raided the home of Shayne Coplan, the CEO of predictive betting platform Polymarket. The law enforcement agency seized Coplan's phone and other electronic devices in the course of the operation. However, Coplan was not taken into custody. The incident was first reported by The New York Post and later confirmed by Polymarket.
Polymarket alleges political retaliation behind FBI raid
Polymarket has indicated that the FBI's move was politically motivated, as most of the platform's users were betting on Donald Trump's win in the election. Unlike most mainstream polls, Polymarket's odds strongly favored Trump with a 58% chance of winning, which later soared to 95% a night before the presidential election. Coplan was disappointed over the FBI raid, suggesting it was a desperate move by those in power against firms they see as politically aligned with their opponents.
Take a look at Coplan's post
DOJ investigates Polymarket over alleged illegal betting
The Department of Justice (DOJ) is now looking into allegations that Polymarket permitted US-based users to bet on its platform. This is illegal in the US, although some users have allegedly circumvented this restriction via virtual private networks (VPNs). After paying a $1.4 million fine to the Commodity Futures Trading Commission in 2022 for non-compliance, Polymarket announced plans to resume US operations just a week ago.
Tech leaders react to FBI's raid
The FBI's raid has drawn reactions from high-profile personalities in the tech sector. Coinbase CEO Brian Armstrong slammed the law enforcement action on X, saying that it would eventually bolster Polymarket. The world's richest man and president-elect's advisor Elon Musk also condemned the incident. "This seems messed up," Musk wrote in response to the news.
Polymarket's ties to Trump and recent scrutiny
Notably, Polymarket has faced criticism after a mysterious French trader placed large bets on Trump's election victory, which was followed by a spike in his chances on the exchanges. The platform has also been heavily funded by Peter Thiel, a prominent Trump supporter. Further, Coplan has been spotted with Donald Trump Jr. and claimed to have received calls from the president-elect's Mar-a-Lago resort during vote counting.
