Federal agents seized Polymarket CEO Shayne Coplan’s phone and other electronic devices early Wednesday.
The move comes shortly after the election-betting platform accurately forecasted President-elect Donald Trump’s victory and outperformed the traditional polls.
Polymarket CEO Might Face Election Manipulation Acquisitions
Law enforcement officers arrived at Coplan’s Soho residence at 6:00 a.m., demanding access to his devices, according to the New York Post. The 26-year-old entrepreneur was not given a specific reason for the seizure.
Also, multiple sources close to Coplan allege the incident is politically motivated. Polymarket is viewing this as retaliation for the platform’s accurate prediction, which diverged from traditional polling.
“The government reportedly suspects market manipulation favoring Trump. Polymarket, a transparent prediction market charging no fees, denies any wrongdoing,” wrote journalist Mario Nawfal on X (formerly Twitter).
Speculation points to potential accusations of market manipulation, though no charges have been filed, and the Polymarket CEO was not detained.
Crypto betting saw surging interest and user engagement ahead of the 2024 US election. Polymarket’s trading volume exceeded $3 billion before November 5, with Trump holding a 58.3% probability of winning.
One high-profile account, “Theo4,” reportedly profited $20.4 million from pro-Trump wagers. Overall, three major traders collectively earned $47 million on correctly predicting Trump’s re-election.
Major Regulatory Challenges Ahead
Meanwhile, France’s National Gaming Authority (ANJ) is considering blocking Polymarket’s services. The regulator may target the platform’s domain or pressure third parties, such as media outlets, to restrict access.
Despite mounting regulatory challenges, Polymarket plans to expand its operations. The company is reportedly exploring a token launch. It’s exploring different strategies to sustain high trading activity beyond the election period.
Following the FBI’s actions earlier today, Polymarket might face intense regulatory scrutiny over the coming months before the new president walks into the White House.
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