In a surprise move, the FBI raided the home of Polymarket CEO Shayne Coplan on November 13, reportedly seizing his phone and electronic devices. The early-morning raid on Coplan’s New York City residence came just days after the U.S. presidential election, raising speculation about the motivations behind the investigation.
Details of the FBI Raid on Coplan
According to sources close to the matter, the FBI arrived at Coplan’s apartment around 6:00 a.m. Eastern Time. Law enforcement demanded Coplan hand over his devices, reportedly without an arrest. The New York Post, which reported the incident, quoted insiders describing the raid as “grand political theater” with suggestions that it was staged for media exposure rather than necessity, as the FBI could have requested the electronics through Coplan’s attorney.
Polymarket’s Response: Claims of Political Motivation
A Polymarket spokesperson confirmed the raid, calling it “political retribution” by the outgoing Biden administration, allegedly due to Polymarket’s role in election-related betting. Polymarket, which allows decentralized, prediction-based betting, gained attention this year with its market tracking the 2024 presidential election, where over $3.7 billion was wagered on the outcome.
“We charge no fees, take no trading positions, and make our market data accessible as a public good,” the spokesperson said, adding that the platform remains committed to helping users engage with world events.
Speculation on Government Intentions and Market Manipulation Concerns
A New York Post source suggested that the government might be investigating Polymarket for potential market manipulation, specifically hinting at alleged attempts to favor former President Donald Trump, who won the recent election. Polymarket had previously reached a $1.4 million settlement with the U.S. Commodity Futures Trading Commission (CFTC) in 2022 for operating without proper registration, adding to its history of regulatory scrutiny.
U.S. Betting Ban and VPN Workarounds
Although U.S. residents are prohibited from betting on Polymarket, some users reportedly bypass restrictions using virtual private networks (VPNs). Polymarket was said to be actively checking that high-stakes bettors were based outside of the United States.
With Trump’s win, there is speculation that U.S. regulatory agencies may experience shifts that could impact platforms like Polymarket. The investigation into Coplan’s activities raises further questions about the future of decentralized betting markets and their role in U.S. politics.
