U.S. Department Of Justice Investigates Polymarket Over Alleged Transactions

According to Odaily, the U.S. Department of Justice is currently investigating the cryptocurrency prediction platform Polymarket for allegedly accepting transactions from U.S. users. The Federal Bureau of Investigation (FBI) has issued a search warrant for Polymarket's CEO, Shayne Coplan, and has confiscated his mobile phone and electronic devices. This investigation follows a 2022 agreement with the Commodity Futures Trading Commission (CFTC), in which Polymarket committed to blocking U.S. traders from using its platform. In response to the investigation, Polymarket released a statement asserting its intention to defend itself and its community. The company accused the FBI's actions of being politically motivated, emphasizing that Polymarket is a fully transparent prediction market designed to help individuals better understand significant events, such as elections. Led by Coplan, Polymarket had previously 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 claimed to have implemented additional measures to verify and block users suspected of being U.S. citizens or residing in the United States.