Polymarket's success predicting the 2024 presidential contest winner has sparked "political retribution," according to a new Decrypt report, which says FBI agents raided the Manhattan home of Polymarket CEO Shayne Coplan, 26, on Wednesday, seizing his phone.
"New phone, who dis?" Coplan posted on social media in the aftermath of the raid.
More than $3 billion was spent on Polymarket trades related to the U.S. presidential contest, which accurately forecast Donald Trump's re-election in 2024. Polymarket has gained significant attention for its ability to correctly predict political winners.
Although Coplan highlighted the nonpartisan nature of the Polymarket prediction platform, he described the FBI raid as "last-ditch effort" by the Joe Biden-Kamala Harris administration to go after firms seemingly supporting Trump. Despite the lack of evidence of a coordinated effort by the Biden administration to target Polymarket, Coplan labeled the raid a "discouraging" move, while still extolling American entrepreneurship in spite of the alleged interference. "In the face of adversity, we build," Coplan said.
The FBI stated that its entry into Coplan's residence was court-authorized.
However, Coplan maintained his position that the raid was merely a witch hunt.
"The incumbents should do some self-reflecting and recognize that taking a more pro-business, pro-startup approach may be what would have changed their fate this election," Coplan added.
While U.S. users are barred from using Polymarket, some Americans have reportedly been able to circumvent the ban through virtual private networks (VPNs). However, the alleged presence of American citizens casting bets on Polymarket has triggered an investigation by the Department of Justice, given that the company was previously banned for not registering with the Commodity Futures Trading Commission (CFTC). In 2022, Polymarket settled with the regulator for $1.2 million, and agreed to terminate its platform in the U.S.
The CFTC also recently went after another prediction market platform, Kalshi, over its listing of political event contracts, but ultimately failed in its legal battle. The setback pushed the CFTC to appeal on the grounds that platforms like Kalshi might imperil election integrity. In a show of the growing strength of prediction platforms, however, rivals like Robinhood and Interactive Brokers have also waded into the space after Kalshi's legal victory.
