FBI Raids Polymarket CEO’s Home, Seizing Electronics Amid Election Betting Controversy

• The FBI raided the home of Polymarket CEO Shayne Coplan, seizing his electronics amid an investigation into the crypto-based prediction market’s handling of election betting odds.

NEW YORK – In a high-profile raid Wednesday morning, FBI agents entered the New York City apartment of Shayne Coplan, CEO of the crypto-based betting platform Polymarket, seizing his phone and electronics.

The FBI’s visit to Coplan’s downtown SoHo residence took place at 6 a.m. and, according to reports, involved multiple agents. The exact nature of the investigation remains unclear, and neither the FBI nor the Department of Justice have commented on the matter.

Polymarket, a well-known prediction market platform, does not allow U.S.-based trading. However, it became a focal point during the recent U.S. presidential election due to its presidential betting odds, which notably favored Donald Trump over Vice President Kamala Harris. This stance was in stark contrast to national polls that showed a tight race, drawing significant attention—and suspicion—regarding its high-traffic wagering on the election outcome.

In a statement to Reuters, Polymarket officials confirmed that Coplan was neither detained nor arrested. The company defended its role as a “fully transparent prediction market,” claiming that it helps “everyday people better understand the events that matter most to them.”

The incident has also sparked a France sports betting controversy. Polymarket’s platform attracted a substantial wager from an anonymous French trader, who reportedly pocketed over $46 million after betting on Trump’s victory.

Adding to the intrigue, Polymarket recently sought additional venture capital funding, having previously raised over $80 million from backers like Peter Thiel’s Founders Fund. This expansion effort was underway when the FBI conducted its raid, which some Polymarket representatives claim may have been politically motivated.

It’s discouraging that the current administration would seek a last-ditch effort to go after companies they deem to be associated with political opponents. We are deeply committed to being non-partisan, and today is no different, but the incumbents should do some self-reflecting…

— Shayne Coplan 🦅 (@shayne_coplan) November 13, 2024

As investigations unfold, Polymarket’s legal status – and its impact on the legal sports betting and prediction market – will likely draw close attention from bettors, regulators, and investors alike.

News tags: Axios | Department of Justice | Donald Trump | FBI | France | Kamala Harris | New York | Peter Thiel | Polymarket | Reuters | Shayne Coplan