The Federal Bureau of Investigation (FBI) executed a raid on the Manhattan residence of Shayne Coplan, the CEO of Polymarket, seizing his phone and other electronic devices. The action follows Polymarket’s accurate prediction of Donald Trump’s victory in the U.S. presidential election. A source close to the situation told The New York Post that the operation is politically motivated, labeling it as “grand political theater at its worst.” The source noted that the FBI could have obtained the requested information through legal channels by contacting Coplan’s lawyer, but instead chose to stage the raid to leak details to the media for political reasons.
Despite the raid, no charges have been filed against Coplan, who has not been arrested. A Polymarket spokesperson clarified that the platform is fully transparent, offering a public good by allowing global observers to analyze market data without fees or trading positions. The company has been under scrutiny in both the United States and France, with French regulators investigating compliance with gambling laws. The raid has sparked speculation about political retribution and potential market manipulation, especially given previous issues with the platform, including a $1.4 million penalty from the Commodity Futures Trading Commission in 2022.
In addition, a recent Fortune report highlighted evidence of wash-trading on Polymarket, leading to a statement from the company that its Terms of Use prohibit market manipulation. Coplan posted on X after his run-in with the feds: “New phone, who dis?” Polymarket does not allow trading in the U.S., though bettors can bypass the ban by accessing the site through a Virtual Private Network (VPN). The FBI’s investigation comes a week after Coplan said Polymarket is planning to return to the U.S. This context underscores the ongoing tensions between regulatory oversight and the operations of prediction markets, raising questions about the balance between free speech and legal compliance in digital platforms.