Authorities conducted a raid on Polymarket CEO Shayne Coplan's home on Wednesday. They seized his cellphone and other electronic devices. Some crypto executives claimed, without any evidence, that this search was politically motivated.
The U.S. Federal Bureau of Investigation (FBI) targeted Coplan's residence, sparking claims of political retribution in the crypto community. Coinbase CEO Brian Armstrong initially tweeted that the raid looked like "political retribution" and suggested it would "backfire," claiming it would make Polymarket even stronger. However, he later deleted that tweet, acknowledging there was no public evidence to support his claims. He said, "I deleted my prior tweet until all the facts are in, but it doesn’t look good."
Early on Wednesday, federal agents searched Coplan’s apartment in New York City, as reported by the New York Post. This raid was part of an investigation led by attorneys from the Southern District of New York, which is part of the Department of Justice. They are looking into whether Polymarket, a platform for political betting, allowed U.S. users to access its services. In 2022, Polymarket settled with the Commodity Futures Trading Commission for $1.4 million to prevent U.S. users from betting on the site.
Neither Polymarket, the Department of Justice, nor the FBI responded immediately to requests for comments.
Polymarket runs decentralized prediction markets. Users can bet on the outcomes of political races, sports events, and more. The platform gained a lot of attention during the U.S. presidential election, with its odds often featured in major news outlets. While polls suggested a close race between Vice President Kamala Harris and former President Donald Trump, Polymarket consistently leaned toward Trump. After Trump’s victory, supporters pointed to his win as proof of the platform's effectiveness.
Coplan suggested that the FBI raid might be linked to his platform’s pro-Trump stance. He expressed disappointment that the current administration would target companies associated with political opponents. Other crypto figures echoed this sentiment. Nic Carter from Castle Island Ventures and investor Mike Dudas stated that the investigation seemed politically motivated. However, Polymarket did not provide any evidence to back up claims of political motivation behind the raid.