FBI agents conducted a raid on the Manhattan apartment of Polymarket CEO Shayne Coplan early Wednesday morning, just a week after the election-betting platform accurately predicted Donald Trump’s victory.
Political Allegations Surround Polymarket
According to a report by the New York Post, Coplan was awakened at 6 am by law enforcement who demanded his phone and other electronic devices.
A source close to Coplan described the raid as “grand political theater at its worst,” suggesting that the FBI could have simply requested the information through his lawyer instead of staging a dramatic raid.
The source speculated that the raid may be “politically motivated,” considering Polymarket’s accurate prediction of Trump’s win over Vice President Kamala Harris on November 5, which contrasted sharply with traditional polling results.
The source further indicated that the government might be responding to “liberal media allegations” accusing Polymarket of market manipulation and rigging its predictions in favor of Trump.
“This is obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election,” the source stated.
While Coplan was not arrested or charged, a Polymarket spokesperson emphasized the company’s commitment to transparency, stating, “Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections.”
Following the incident, Coplan posted on X (formerly Twitter), “New phone, who dis?” indicating his nonchalant response to the situation.
Under Investigation By French Authorities
The FBI’s investigation comes shortly after Coplan hinted at plans for Polymarket to return to the US market. The platform had previously shown Trump with a 58.6% chance of winning the election just before Election Day, while Harris’s odds stood at 41.4%.
Coplan has also been seen socializing with Donald Trump Jr., further fueling speculation about the platform’s connections to Trump and his allies.
In 2022, Polymarket was forced to pause its US trading operations and pay a $1.4 million penalty to the Commodity Futures Trading Commission (CFTC) for failing to register with the agency. Since then, the platform has primarily operated for bettors in other countries.
A notable incident occurred post-election when a mystery French trader, known by the alias Théo, reportedly profited $85 million from Trump-related bets, significantly higher than earlier estimates. Théo claimed his betting activities were strictly profit-driven and denied any intention to influence the election outcome.
Additionally, Polymarket is currently under scrutiny from France’s gambling regulator, Autorité Nationale des Jeux, to ensure compliance with local laws. A spokesperson for the regulator confirmed awareness of the platform and indicated that they are examining its operations.
Featured image from BBC, chart from TradingView.com