KEY TAKEAWAYS
- The FBI raid on Polymarket founder Shayne Coplan might have been political retribution, according to Coplan and another source.
- A court order was issued as part of a ‘criminal investigation.’ However, the FBI didn’t give Coplan a specific reason for the raid.
- The raid might have targeted Polymarket due to the latter’s role in the US elections and for unwittingly allowing US users to bet.
Yesterday, the FBI descended upon the home of Polymarket founder Shayne Coplan.
Alleged reason – a criminal investigation.
Suspected reason – political retribution by the Biden administration.
The ‘why’ is simple in the minds of many. Polymarket correctly predicted Trump’s presidential win and unwittingly allowed US users to bet despite not being allowed to do so.
Let’s see what happened and what will happen to Coplan.
Post-Election ‘Criminal Investigation’ on Polymarket
On a beautiful Wednesday morning at 06:00, the 26-year-old Polymarket founder Shayne Coplan received an unscheduled visit – from the FBI.
They were there under a court order and part of a ‘criminal investigation.’ The agents seized Coplan’s phone and electronics and raided his Manhattan residence.
Looking for what, you ask? Unclear.
But the raid might have happened for a couple of reasons:
1. Polymarket accurately predicted Trump’s victory in the US elections.
2. US users were still able to bet on Polymarket through virtual private networks (VPNs), bypassing the geo block.
A source told the NY Post that it was ‘grand political theater at its worst,’ referring to the apparent lack of a good reason for the raid.
They could have asked his lawyers for any of these things. Instead, they staged a so-called raid so they can leak it to the media and use it for obvious political reasons.
– New York Post Source
The FBI didn’t offer Coplan an explanation for the raid. However, the same source suspects it was political retribution.
Did Polymarket Do Wrong?
If you’re not familiar with the Polymarket situation, here’s a summary:
- Polymarket is an online prediction market that lets users bet on pretty much anything, from global warming to the 2024 US elections.
- In 2022, the platform paid a $1.4M fine to the Commodity Futures Trading Commission and agreed to block US users from betting.
- However, US users bypassed the geo-block with VPNs and continued betting. Allegedly, this was an ‘open secret’ on Polymarket.
- Polymarket’s popularity peaked during the US elections after recording over $3.5B in trading volume, prompting France to consider banning the platform.
Now, this happens, and many are simply connecting the dots.
A Polymarket representative confirmed that Coplan wasn’t arrested or charged with anything. He also clarified that the platform takes an impartial position toward betting.
We charge no fees, take no trading positions, and allow observers from around the world to analyze all market data as a public good.
– Polymarket Representative
Are These the Dying Throes of the Biden Administration?
Ultimately, popular opinion seems to agree the FBI raid was unnecessary and carefully targeted. And that it was a likely political retribution for Polymarket’s role in the US elections.
Coplan himself emphasized this point in an X post today.
It remains to be seen how the situation unfolds and whether the US government will keep hounding Coplan and Polymarket.
References
- FBI seizes Polymarket CEO’s phone, electronics after betting platform predicts Trump win: source (New York Post)
- FBI Agents Raid Manhattan House of Polymarket CEO, Sources Suspect Political Retribution (Cryptonews)
- Shayne Coplan’s X Post About the FBI Raid on His Home (X)
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Alex is a junior crypto editor passionate about data privacy, cybersecurity, and crypto. You’ll often find him geeking out on the latest security key, password manager, or the hottest crypto presale, looking for that one digital currency to rule them all. With over six years of freelance writing under his belt, Alex fell in love with the process.
From researching data and brainstorming topics to comparing cryptocurrency whitepapers and digging deep into crypto roadmaps, it’s all in the keyboard. Ideally, a mechanical one with brown switches.
Alex is an eternal learner who knows that continuous improvement is the best way to remain relevant. Currently, he’s brushing up his E-E-A-T and SEO skills, but who knows what comes next? In his spare time, he enjoys video games, horror movies, and going to the gym, which sometimes conflicts with his gourmand nature. Oh, well, you can’t have them all.
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