November 14, 2024
New York, NY – Federal agents raided the Manhattan apartment of Shayne Coplan, CEO of prediction market platform Polymarket, early Wednesday morning, according to sources close to the matter. The raid occurred a week after Polymarket accurately forecast Donald Trump’s victory over Kamala Harris in the 2024 presidential election.
The raid, conducted at 6 a.m. in Coplan’s Soho residence, involved FBI agents seizing his phone and other electronic devices. According to a source close to Coplan, who spoke to The New York Post, the incident felt like “grand political theater.” The source claimed, “They could have asked his lawyer 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.”
The source suggested that the raid could be a response to Polymarket’s influence in election forecasting, as traditional polling had predicted a closer race, while Polymarket’s data gave Trump a 58.6% chance of winning on Election Day.
Coplan, 26, was reportedly not provided an explanation for the raid, though speculation from his inner circle attributes the move to potential political retribution. Polymarket, which allows users to bet on various outcomes, is facing allegations of market manipulation. In the days leading up to the election, reports from media outlets accused the platform of favoring Trump through its predictions and market activities.
Controversy and Funding Ties to Trump Allies
Polymarket’s connection to Trump and his allies has raised additional questions. Billionaire Trump supporter Peter Thiel reportedly raised around $70 million in funding for the platform, and Coplan has been seen publicly with Donald Trump Jr. This financial backing and these associations have fueled theories that the betting site could be used to influence public perception during the election cycle.
In 2022, Polymarket was fined $1.4 million by the Commodity Futures Trading Commission for failing to register with the agency. Afterward, it restricted trading for U.S.-based bettors, though some users have accessed the site via VPN.
Recently, a French bettor identified as “Théo” made international headlines by allegedly profiting over $85 million by betting on Trump. He told The Wall Street Journal that his motives were purely financial and denied any attempts to sway the election. France’s gambling regulator, Autorité Nationale des Jeux, has announced it is reviewing Polymarket’s compliance with its laws.
Ongoing Investigations
The FBI has not released a statement regarding the purpose of Wednesday’s raid. Polymarket’s spokesperson emphasized the platform’s commitment to transparency, stating, “Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections. We charge no fees, take no trading positions, and allow observers from around the world to analyze all market data as a public good.”
After the raid, Coplan responded with a light-hearted post on social media, writing, “New phone, who dis?” The FBI’s actions have sparked questions about whether this investigation marks the beginning of further scrutiny for Polymarket as it considers reentering the U.S. market.
The raid on Coplan’s apartment adds to a mounting list of controversies surrounding Polymarket, as it navigates legal challenges both domestically and internationally. As it stands, Polymarket’s legal team awaits any further directives from federal authorities.
Sources:
- “FBI Raids Polymarket CEO Shayne Coplan’s Manhattan Apartment,” The New York Post.
- “Polymarket ‘Whale’ Raked in $85M on Trump Win,” The Wall Street Journal.
- “Polymarket Faces Scrutiny from French Gambling Regulator,” Bloomberg.
- “Polymarket’s Legal Challenges,” Fortune.
