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Federal agents conducted a surprise raid at the Manhattan apartment of Polymarket CEO Shayne Coplan early Wednesday, only days after the platform’s election market predicted Donald Trump’s decisive victory over Vice President Kamala Harris, sources reveal. Now, Polymarket FBI action has become real.
Sources close to Coplan characterized the raid as “political theater,” emphasizing that federal agents could have requested his electronics through his attorney rather than staging a raid, which they believe was intended to fuel a political narrative.
Polymarket FBI Action
While Coplan was not provided an explicit reason for the raid, sources speculate it may be linked to Polymarket’s high-profile prediction favoring Trump’s win, which contradicted traditional poll forecasts. The authorities may be looking to accuse Polymarket of market manipulation or skewing betting odds, with suggestions that the move was a politically motivated response to the platform’s election forecast.
A spokesperson for Polymarket confirmed that Coplan has not been charged and was not detained. They noted that Polymarket is a transparent prediction platform that allows users to gain insights into significant global events, including elections, and clarified that the platform does not take fees or market positions, with all market data accessible to the public for analysis.
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The FBI did not respond to requests for comment. Following the raid, Coplan hinted at the seizure of his devices with a message on X: “New phone, who dis?” Polymarket, which restricts US residents from trading on the platform, has seen US bettors bypass these restrictions via VPNs.
The raid comes just a week after Coplan discussed Polymarket’s intentions to expand into the US. The platform showed a 58.6% chance for Trump’s victory on Election Day morning, while Harris stood at 41.4%. Polymarket’s association with Trump-supporting figures, such as billionaire Peter Thiel, who has raised significant funding for the platform, has also drawn attention.
Further Details
The 26-year-old Coplan was reportedly woken at 6 a.m. in his Soho residence by FBI agents who demanded access to his phone and other electronics, according to sources. This event follows previous US regulatory actions against Polymarket, including a $1.4 million penalty in 2022 from the Commodity Futures Trading Commission (CFTC) for operating without registration.
Following the election, a Wall Street Journal report revealed that a mysterious French trader, identified as “Théo,” profited by $85 million on Polymarket’s Trump victory odds, significantly more than previously reported. Théo has stated that his trades were profit-driven rather than aimed at influencing election outcomes, expressing a desire to return to his normal life.
Read Also: Will Users Stick With Polymarket After U.S. Elections
A recent report from Fortune also raised concerns about potential wash-trading on Polymarket, a prohibited manipulation tactic where traders create artificial trading volume. Polymarket’s spokesperson emphasized that the platform’s Terms of Use strictly forbid market manipulation.
In addition to scrutiny from US regulators, Polymarket is now under investigation by the French gambling authority, Autorité Nationale des Jeux (ANJ), to assess compliance with French gambling laws. A spokesperson for the ANJ reported that they are currently reviewing Polymarket’s operations in light of French gambling regulations.
As Polymarket faces mounting regulatory attention both in the US and abroad, the platform’s activities and accuracy in election forecasting continue to attract significant public and legal interest.
