FBI agents conducted a search on Wednesday at the New York City home of Polymarket CEO Shayne Coplan. The investigation focuses on whether the platform operated as an unlicensed commodities exchange. However, the 26-year-old founder, who is now the subject of a criminal investigation, called this probe a last-ditch effort to go after companies.
The raid comes in after the intense scrutiny of Polymarket with allegations that it allowed US users to place bets. It allegedly violated a 2022 settlement with the Commodity Futures Trading Commission (CFTC). The better platform somehow got its prominence during the 2024 US presidential election. The bettors on the site placed much higher odds on Donald Trump winning against Kamala Harris which diverged sharply from opinion polls.
Polymarket CEO slams FBI raid
Shayne Coplan in a first post after the raid and wrote, “New phone, who dis?” implying that he is posting from a new device after his old one was seized. He even expressed frustration over the government’s actions.
Coplan criticized the Biden administration, claiming that it was making a “last-ditch effort” to go after companies they deemed to be associated with political opponents. He mentioned that Polymarket is deeply committed to being non-partisan.
He advised that 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 in this election. Polymarket CEO highlighted that the platform has provided value to millions of people in this election cycle and caused no harm to anyone.
It’s discouraging that the current administration would seek 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…
— Shayne Coplan 🦅 (@shayne_coplan) November 13, 2024
In the end, he seems to be proud to say that the future of America and in particular American entrepreneurship has never been brighter.
Polymarket’s trading vol drops
Polymarket’s boom during the 2024 elections saw a steep decline as its trading volume dropped by 84%. Its daily active users are down by 53% since Trump’s election victory was confirmed. The prediction market saw massive action and drove $3.7 billion in cumulative election-related bets. But now, as jackpot payouts are completed, the platform’s activity is plummeting.
A trader known as “Théo” reportedly profited over $85 million after betting big on Trump’s win. This was nearly double the original $48 million estimate. It was revealed that Théo operated at least 11 accounts to make his high-stakes wagers.
Many were speculating that these might be a campaign tactic but his trades turned out to be a “high-conviction outlook.”
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