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Polymarket was named the subject of a DOJ investigation over whether the predictions market allowed U.S. users on its platform.
The Department of Justice is investigating Polymarket for allegedly allowing American users access to its Polygon-based event contract website, despite being prohibited from operating in the U.S. Bloomberg’s report on the DOJ’s probe surfaced a few hours after an unexpected visit to Polymarket CEO Shayne Coplan by Federal Bureau of Investigation officers.
The FBI seized Coplan’s devices for undisclosed reasons during a raid on his Soho apartment in the early hours of Nov. 14, as previously reported by crypto.news.
Initial reactions from crypto industry leaders, such as Coinbase CEO Brian Armstrong, suggested the DOJ’s probe and the FBI’s search might be politically motivated. Armstrong deleted his tweet shortly after, advocating for patience and urging community members to wait for the facts.
The undertone of Coplan’s public statement on the matter via X echoed Armstrong’s initial response, suggesting that U.S. authorities scrutinized his company based on unfounded and suspected political affiliations.
Polymarket has consistently denied being funded by or in league with any American political forces. Following accusations from mainstream media of manipulation and unauthorized U.S. participation, Polymarket relaunched strict know-your-customer checks to dispel doubts.
Coplan expressed disappointment at the DOJ and FBI’s actions, likening the move to an unnecessary crackdown targeting perceived political opponents.
It remains unclear whether the Justice Department’s case against Polymarket will hold up following the U.S. election results. Although Republican Donald Trump, who adopted a pro-crypto stance during his campaign, was re-elected, it is unknown if he will support the leading platform where users accurately predicted his historic re-election.