FBI raids home of Polymarket founder

The FBI has raided the home of the chief executive and founder of the betting platform Polymarket, Shayne Coplan, seizing his electronic devices, media have reported. The company claims the raid was carried out in retaliation for its users overwhelmingly betting on a Donald Trump victory in the US presidential election.

Federal law enforcement agents reportedly seized the 26-year-old CEO’s phone and computers from his home in New York in an early-morning raid on Wednesday as part of an investigation into the crypto betting platform. Coplan himself was not arrested, Polymarket said.

While no reason for the raid has been declared publicly, some observers suggested the US authorities may be investigating Polymarket for market manipulation or an attempt to influence political polls in favor of Trump.

Polymarket, however, claims the search was “obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election,” a source close to the matter told the New York Post.

It comes after Polymarket saw $3.7 billion worth of bets placed on the 2024 US presidential election. The offshore crypto gambling website offered odds on Trump that were significantly shorter than those on Vice President Kamala Harris, reflecting a projection that differed sharply from most mainstream polls.

In a post on X, Coplan accused the outgoing administration of US President Joe Biden of seeking 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 and recognize that taking a more pro-business, pro-startup approach may be what would have changed their fate this election,” Coplan wrote on Thursday.

According to media reports, the Department of Justice is investigating Polymarket for allegedly allowing US-based traders to bet on the site. The company is required to block US-based users from making transactions on its platform as part of a 2022 agreement with the Commodity Futures Trading Commission (CFTC).

“Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections,” the company said.

The platform surged in popularity in the run-up to the election and attracted additional scrutiny after a French trader reportedly made $85 million on massive bets on Trump winning the election.