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Crypto betting platform Polymarket could be facing CFTC investigation

www.thecoinrepublic.com 25 October 2021 17:04, UTC
Reading time: ~2 m

The decentralized information markets platform is currently in hot water under investigation by the United States Commodity Futures Trading Commission.   

It is said that CFTC is looking into Polymarket as to whether the platform is enabling its users to utilize either swaps or binary options in their trading and if such should be registered with the government agency. That said, a representative from the platform said that Polymarket is firmly committed to abiding by applicable laws and regulations and to giving information to regulators that will facilitate any inquiry they might conduct.  

CFTC, on the other hand, hasn’t confirmed yet if they are indeed investigating Polymarket.  

Reports suggest that the firm has tapped James McDonald who’s the former CFTC director of the agency’s enforcement division. It’s also worth noting that McDonald is currently a partner at Sullivan & Cromwell which is a legal firm based in New York.  

Moreover, the report also claims that the CFTC investigation comes right after Polymarket is in discussion in bagging another round of funding. It was also learned that such funding would put the platform to almost a billion dollars in valuation.  

As of Friday afternoon, last week, Polymarket already has a plethora of possible wagers. This ranges from whether the U.S. Treasury Department will be minting that trillion-dollar coin by the fifth of November, Tesla and SpaceX CEO Elon Musk to reach outer space by the end of this year, to singer-songwriter Nicki Minaj getting the COVID-19 jab by November 29, Bloomberg noted.  

That said, Polymarket users leaned towards favoring no Treasury coin getting minted, Musk coming up short, and Minaj remaining unvaccinated.    

Looking back  

It can also be recalled back in October of 2020 that the platform had sealed funding amounting to four million dollars as it was led by the investment firm Polychain Capital. Other entities that participate in such an endeavor include Coinbase’s former Chief Technology Officer Balaji Srinivasan, AngelList CEO Naval Ravikant, and CoinShares’ Chief Strategy Officer Meltem Demirors.  

Polymarket is led by its Founder – 23year-old Shayne Coplan. The platform has been facilitating some four billion shares since it was introduced. Further, it was also stated that cryptocurrency has grown to become a crucial part of them that instead of U.S. dollars, their customer who wants to make trades have to use the Coinbase Global USD coin, a stable coin.      

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