F.B.I. Conducts Search at Polymarket Founder’s New York Home
On Wednesday morning, the Federal Bureau of Investigation (F.B.I.) executed a search warrant at the New York City residence of Shayne Coplan, the 26-year-old founder of the controversial betting platform, Polymarket. This operation is part of a broader criminal investigation led by the F.B.I. in coordination with the U.S. Attorney’s Office for the Southern District of New York, according to multiple sources familiar with the situation.
The investigation primarily centers on allegations that Mr. Coplan operated Polymarket as an unlicensed commodities exchange, purportedly allowing users within the United States to place bets in direct violation of a previous settlement agreement with the U.S. government. Since its rise to prominence this fall, Polymarket has gained significant attention for offering betting odds on high-stakes events, including the upcoming presidential election.
During the raid, F.B.I. agents seized several electronic devices belonging to Mr. Coplan, including his mobile phone. A law enforcement official confirmed that agents conducted “court-authorized law enforcement activity” at Mr. Coplan’s address early in the morning, though they refrained from providing further details.
The legal landscape surrounding election betting in the United States is complex and often unclear. In 2022, Polymarket reached a settlement with the Commodity Futures Trading Commission (CFTC), agreeing to cease operations for U.S.-based users due to its previous unregistered status. As part of this settlement, the company was fined $1.4 million.
Despite this agreement, it became an “open secret” that many U.S. residents could still access the site by utilizing virtual private networks (VPNs). A former employee revealed to The New York Times that customers frequently shared strategies on social media for bypassing the restrictions.
Polymarket’s popularity surged during the current presidential campaign, especially as it provided odds that suggested a substantial lead for former President Donald J. Trump over Vice President Kamala Harris, even when traditional polls indicated a tighter race.
In response to the F.B.I. raid, a spokesperson for Polymarket characterized the action as an instance of “obvious political retribution by the outgoing administration.” Mr. Coplan himself took to social media platform X, asserting that the Biden administration was making “a last-ditch effort to target companies they consider aligned with political adversaries.”
The U.S. Attorney’s Office declined to provide any comments on the ongoing investigation. Earlier reports regarding the situation were also covered by Bloomberg and The New York Post.
