TechFlow news — On November 14, according to Bloomberg, the U.S. Department of Justice is investigating the cryptocurrency prediction platform Polymarket over allegations that it accepted trades from U.S. users. The Federal Bureau of Investigation (FBI) obtained a search warrant for Polymarket CEO Shayne Coplan and seized his phone and electronic devices.
Under a 2022 agreement with the Commodity Futures Trading Commission (CFTC), Polymarket committed to blocking U.S. traders from transacting on its platform. In a statement, Polymarket said it would “stand up for ourselves and our community,” accusing the FBI’s search of being politically motivated. “Polymarket is a fully transparent prediction market that helps ordinary people better understand the events that matter most to them, including elections,” the company said.
The platform, led by Coplan, reached an enforcement settlement with the CFTC two years ago, agreeing not only to block U.S. users but also to pay a $1.4 million fine. In recent weeks, the company has stated it has taken additional steps to verify and block users it suspects may be U.S. citizens or residing in the United States.
