FBI Raids Polymarket CEO’s Home Over Election Betting Scandal

Federal agents recently searched the Manhattan home of Polymarket CEO Shayne Coplan. Arriving early Wednesday morning, agents reportedly confiscated Coplan’s phone and other electronics. 

The FBI investigation has brought fresh attention to Polymarket’s activities, especially regarding election-related predictions. Polymarket confirmed the raid, but authorities did not detain Coplan.

Polymarket’s Election Forecasts Draw Attention

Before the recent election, Polymarket allowed users to bet on the outcome. Showing high odds for Trump over Harris, Polymarket’s predictions contradicted mainstream polling data, raising questions. 

On social media, Coplan expressed frustration over the FBI’s actions, while Polymarket claimed the raid was politically motivated. The company maintains a commitment to transparency and non-partisanship, presenting forecasts as a tool for public understanding.

Polymarket asserts that it neither profits directly from user trades nor takes trading positions. However, the U.S. Department of Justice is investigating the company’s possible facilitation of online betting within the U.S., raising compliance concerns.

A French Trader’s Profits Add to the Scrutiny

The investigation into Polymarket coincides with increased scrutiny over one French trader’s success on the platform. Known as Théo, this trader reportedly earned $85 million by betting on Trump’s victory, which has now caught the attention of French regulators. 

Authorities are examining Polymarket’s compliance with gambling laws, focusing on how such a large sum was earned. Polymarket’s recent push to raise $50 million and launch a new digital token has also intensified regulatory interest. 

The proposed token aimed to decentralize election outcome verification while boosting user engagement through DeFi features. With regulators watching closely, Polymarket faces mounting pressure as it navigates legal challenges both in the U.S. and abroad.