FBI raids crypto gambling platform Polymarket
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20 Nov 2024 •
Reading time: 2 minutes The FBI has raided Polymarket, a cryptocurrency betting platform, after it was accused of facilitating illegal gambling practices for US players.
Polymarket promised to block US gamblers in 2022 after a settlement with the Commodity Futures Trading Commission (CFTC). However, it now appears that many Americans still gained access using VPNs.
In 2022, Polymarket was already fined $1.4 million (€1.3 million) and ordered to comply with the rules. But apparently not everyone complied, and the FBI has now taken it on the case.
French gambler bets millions on Trump
It gets even weirder. A French gambler is said to have bet almost $30 million (€28.4 million) on Donald Trump winning the election via Polymarket. According to reports, the gambling market was largely dominated by a small group of gamblers who bet huge amounts. The gambler is said to have done this out of distrust of polls, which would have previously underestimated Trump.
These huge bets have attracted the attention of regulators around the world. Not only the FBI, but also French authorities are now looking into Polymarket’s activities.
Founder Shayne Coplan speaks out
Shayne Coplan, the founder of Polymarket, reacted strongly to the raid. The FBI confiscated his phone, but that did not stop him from sharing his opinions via X (formerly Twitter). According to Coplan, the raid is politically motivated. He accused the government of targeting companies that they see as connected to political opponents.
“The current rulers really need to take a look in the mirror,” Coplan wrote. “Perhaps a more supportive policy for companies and startups could have changed their fate in this election.”
Coplan also hinted that Polymarket would like to return to the American market. But that is only possible if they adhere to the strict rules of the CFTC.
What does this mean for Polymarket?
Polymarket’s future hangs in the balance. The FBI is now investigating how Americans gained access to the platform despite the blockades. This puts the platform in trouble again, especially since it previously made promises that it now appears not to be keeping. Polymarket seems to be looking at other examples, such as the platform Kalshi, which was given permission to offer election betting through a legal procedure. But whether Polymarket can follow that example depends on the outcome of the ongoing investigations.