Federal Bureau of Investigation (FBI) agents on Wednesday morning searched the Manhattan, New York City, US, apartment of Shayne Coplan, founder and CEO of the prediction market platform Polymarket. The search was part of a criminal investigation by the FBI and the US attorney’s office for the southern district of New York, according to a New York Times report.
FBI agents arrived at Coplan’s SoHo apartment at 6 am and seized several electronic devices, including his phone.
The investigation focuses on whether Coplan, 26, operated Polymarket as an unlicensed commodities exchange. This allegedly allowed US users to place bets, potentially violating a prior settlement with the US government.
Polymarket accurately predicted Donald Trump‘s victory in the 2024 presidential election, forecasting a 58.6% chance of a Trump win on the morning of Election Day.
A law enforcement official confirmed to The New York Times that FBI agents conducted “court-authorized law enforcement activity” at Coplan’s residence early Wednesday.
“Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections,” a Polymarket spokesperson told the New York Post. “We charge no fees, take no trading positions, and allow observers worldwide to analyze all market data as a public good,” the spokesperson added.
Coplan has not been arrested or charged.
A source close to the matter speculated to the New York Post that the search might be politically motivated. “This is obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election,” the source claimed.
Following the search, Coplan posted on social media platform X, saying, “New phone, who dis?”
In another post on X, Coplan accused the Biden administration of a politically motivated attack, writing:
“It’s discouraging that the current administration would make a last-ditch effort to go after companies they deem associated with political opponents. We are deeply committed to being non-partisan, and today is no different. However, the incumbents should reflect and recognize that adopting a more pro-business, pro-startup approach might have altered their fate this election.”
In 2022, Polymarket agreed to halt services for US-based users after settling with the Commodity Futures Trading Commission (CFTC) for operating without proper registration. The company paid a $1.4 million fine.
