DOJ investigates Polymarket over alleged U.S. user participation

Polymarket has been named as the subject of a DOJ investigation into whether its prediction market allows US users on its platform.

The Justice Department is investigating Polymarket for allegedly allowing American users to access its Polygon-based event contract website despite being banned from operating in the U.S. Bloomberg’s report on the Justice Department’s investigation comes just a few days after an unexpected visit from Polymarket CEO Shayne Coplan It showed up hours later. Federal Bureau of Investigation officers.

As previously reported by Crypto.news, the FBI seized Coplan’s devices for undisclosed reasons during a raid on his Soho apartment in the early hours of November 14.

Initial reactions from crypto industry leaders such as Coinbase CEO Brian Armstrong suggested that the Justice Department’s investigation and the FBI’s investigation may have been politically motivated. Armstrong soon deleted his tweet and pleaded for patience, urging community members to wait for the facts.

Deleted my prior tweet until all the facts are in – but doesn’t look good https://t.co/XKpjnevmvk

— Brian Armstrong (@brian_armstrong) November 14, 2024

The undertone of Coplan’s press release on the matter, via

Polymarket has consistently denied being funded by or in league with any American political power. Following mainstream media accusations of manipulation and unauthorized US involvement, Polymarket reintroduced stringent know-your-customer checks to dispel suspicion.

Coplan expressed disappointment with the actions of the Justice Department and FBI, likening the move to an unnecessary crackdown targeting perceived political opponents.

It remains unclear whether the Justice Department’s lawsuit against Polymarket will continue after the US election results. Although Republican Donald Trump, who adopted a pro-crypto stance during his campaign, has been re-elected, it is unknown whether he will support the leading platform whose users correctly predicted his historic re-election.

It’s discouraging that the current administration would seek a last-ditch effort to go after companies they deem to be associated with political opponents. We are deeply committed to being non-partisan, and today is no different, but the incumbents should do some self-reflecting…

— Shayne Coplan 🦅 (@shayne_coplan) November 13, 2024