FBI Raids the Home of Cryptocurrency Platform Polymarket CEO

The FBI seized the phone and electronic devices of Shayne Coplan, the CEO of Polymarket, during a raid Wednesday morning.

The FBI confiscated the phone and other electronic devices of Shayne Coplan, CEO of cryptocurrency platform Polymarket, during a raid early Wednesday morning.

The incident occurred just a week after the platform correctly predicted a Donald Trump victory in a presidential election bet.

According to sources, law enforcement arrived at the 26-year-old entrepreneur’s Soho home at 6 a.m. and demanded he hand over his devices.

However, a source close to the matter described the raid as “political theater,” adding that law enforcement could legally demand what they want through lawyers.

One source said the government could take political action against the highly accurate market forecast predicting a Trump victory.

The government might claim, “This is a market manipulation tactic or a ploy to get Trump to win.”

Polymarket is a free public forecasting platform that aims to shed light on upcoming events, such as elections.

“We don’t charge any fees, we don’t take positions in the markets, and we publish our market data for free,” the spokesperson said.

According to a source close to the matter, Coplan was not arrested during the incident.

The platform acted as a key indicator before the official election callWhen the polls closed on election night, Polymarket showed the odds of a Trump victory at about 58%. That number began to rise as the night wore on. By 11:43 p.m., about six hours before the Associated Press called the election, the odds had reached 95%.

Coplan stated in a post on X on Wednesday morning that reports indicated the Trump campaign had predicted their victory based on Polymarket’s forecast.

A month before the election, prediction markets showed Trump leading Vice President Kamala Harris with a 67% chance of winning.

Traditional polls never showed a clear lead, with neither candidate exceeding the margin of error in key swing states.

Coplan called the result “a triumph of prediction markets,” describing the site as “the most accurate way to follow the election.”

This election marked the first time Americans could legally bet on the outcome of an election.

In early October, a federal court ruled in Kalshi’s favor, permitting election event contracts.

However, this isn’t the first time Polymarket has encountered issues with the government. It was recently reported that France’s gambling regulator, the ANJ, was facing a possible ban after large amounts of betting were placed on the 2024 U.S. presidential election.Coinbase CEO criticizes

Coinbase CEO Brian Armstrong has criticized the recent investigation by the Department of Justice (DOJ) into crypto-based prediction market platform Polymarket.

Armstrong took to social media to express his belief that the DOJ’s actions are politically motivated and could ultimately amplify Polymarket’s influence.

The investigation, which included a search of Polymarket CEO Shayne Coplan’s devices, has generated significant attention in the crypto and tech industries.

In a post on X, Coinbase CEO Brian Armstrong shared his perspective on the Polymarket investigation.

Polymarket allegedly violated earlier agreements with US regulators by allowing US-based users to place bets during the FBI raid.

A settlement with the Commodity Futures Trading Commission (CFTC) in 2022 limited Polymarket’s access to US-based investors and resulted in the company paying a fine of $1.4 million.

However, recent findings indicate that US users may still be using the platform, which raises compliance concerns.Stay up-to-date with the latest breaking news by following Chainlink Today on Twitter, Facebook, and Instagram.

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