FBI Raids Polymarket CEO’s Home Amid 2024 Election Bet Probe

On Wednesday, federal investigators searched Polymarket CEO Shayne Coplan's Manhattan home, seizing his phone as part of a high-profile probe against the predictive betting website. The FBI's unannounced search comes as Polymarket is under fire for its role in election betting, with the platform purportedly preferring predictions of a Donald Trump win over conventional surveys.

While Coplan, 26, was not detained, he turned to social media after the search, tweeting the mysterious comment, “New phone, who dis?” Some saw this as a humorous reference to the event. Polymarket claims the raid was politically motivated, implying that it was punishment for Trump-friendly forecasts on its platform, which Coplan defends as neutral. “We are committed to non-partisanship,” he stated, pushing politicians to take a pro-business stance.

The Department of Justice is investigating Polymarket to see whether it permitted US people to make bets despite regulatory prohibitions. The site's prediction markets allow users to speculate on outcomes in a range of areas, including elections, despite the fact that US law forbids such wagering without registration. According to reports, some users circumvent this limitation by connecting to the site over virtual private networks.

Polymarket is embroiled in more controversy because of claims of wash-trading, a kind of illicit market manipulation. These allegations arose just before the election, raising new suspicions about the site's activities.

In reaction to the FBI's action, important figures in technology rallied in support of Coplan. Coinbase CEO Brian Armstrong called the raid futile, claiming it only helped to boost Polymarket's popularity. Billionaire Elon Musk also chimed in, describing the issue as “messed up.”

Polymarket, which resumed US operations this week after paying a $1.4 million fine to the Commodity Futures Trading Commission in 2022 for failing to register as necessary, has always billed itself as a transparent tool for the public to get insight into current events. Polymarket, in a statement to media outlets, condemned the raid as “political retribution” for its election forecasts, claiming that its platform correctly represented popular feeling.

The FBI has not yet issued a public statement on the raid.