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The Commodity Futures Trading Commission (CFTC) has subpoenaed crypto exchange Coinbase for customer data pertaining to the ongoing Polymarket case.
The subpoena, which was highlighted by Eric Conner, co-author of Ethereum’s EIP-1559 proposal, seeks information about certain Coinbase users in connection to the case.
"Biden's CFTC is subpoenaing customer info from @coinbase in their case against @Polymarket," Conner wrote on Twitter.
Coinbase, in turn, has reportedly emailed affected customers, stating: "You do not need to take any action, but Coinbase may need to send information related to your account to the Commodity Futures Trading Commission in response to the subpoena request, unless by the close of business on January 15, 2025, Coinbase formally receives a motion to quash the subpoena or other legal documents preventing Coinbase from sharing such information."
The email has sparked strong reactions within the crypto community, with many criticizing what they perceive as a drastic shift in the Biden administration's stance on cryptocurrency.
Several users have accused the government of conducting a "witch hunt" against the crypto industry.
"This will be in the history books as one of the most asinine targeted attacks by an administration on a whole industry," wrote X user @WazzCrypto.
The saga began when the U.S. government launched both criminal and civil investigations into Polymarket over allegations that the crypto prediction market platform violated its 2022 settlement agreement with the CFTC.
The agreement stipulated that Polymarket would cease services for U.S.-based users, among other conditions.
However, the platform is accused of continuing to allow U.S. users to place election-related bets on its exchange.
Under U.S. law, election betting is only legal in markets regulated by the CFTC, such as the stock market or the betting exchange PredictIt, which is also licensed by the CFTC.
The FBI raided the New York residence of Polymarket founder and CEO Shayne Coplan on November 13, 2024, seizing his phone and other electronic devices as part of the investigation.
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