FBI Conducts Raid on Polymarket CEO Shayne Coplan’s Apartment
On November 13, Shayne Coplan, CEO of Polymarket, experienced a federal investigation when FBI agents conducted a raid at his Manhattan apartment. They seized his phones and electronic devices; however, he was not arrested or charged.
Allegations of Partisan Retaliation
Coplan remarked on the raid with irony on X (formerly Twitter):
“New phone, who dis?”
The raid's timing raised concerns due to Polymarket's recent predictions favoring Donald Trump, contrasting mainstream polling. Polymarket representatives suggested the raid might be politically motivated, asserting that their forecasts are non-partisan. A spokesperson stated, “It’s concerning that the current administration would target companies perceived to align with their political opponents.” Coplan advocated for a more “pro-business, pro-startup” environment.
Although uncharged, reports indicate the Department of Justice is investigating allegations that Polymarket enabled betting by US users, which regulations prohibit. Previously, in 2022, the Commodity Futures Trading Commission (CFTC) fined Polymarket $1.4 million for operating without proper registration, leading to a temporary suspension of its US services.
Industry Reactions and Public Outcry
The crypto and tech sectors quickly responded to the raid. Brian Armstrong, CEO of Coinbase, expressed concern on social media, suggesting that the action could enhance Polymarket’s reputation: “This will backfire — they just made Polymarket even more powerful,” though he later deleted the post.
Elon Musk, a prominent tech figure and advisor to President-elect Trump, described the raid as “messed up,” fueling speculation that the investigation may involve more than regulatory compliance.
This incident underscores the complex regulatory landscape blockchain platforms face in the US. The raid contributes to ongoing discussions about the intersection of political dynamics and regulatory actions. As Polymarket promotes transparency and user-focused innovation, supporters argue that its treatment could set a significant precedent for predictive markets.