Federal agents raided the Manhattan home of Polymarket prediction market's chief executive officer and seized his phone early Wednesday morning, amid controversy over the prediction site's electoral forecasts, The New York Post reported Thursday.
Shayne Coplan, 26, was confronted by FBI agents in his home at 6 a.m. but was not arrested, according to company statements to The New York Post.
Following the raid, Coplan posted on X, "New phone, who dis?"
Nov. 6, 2024 in West Palm Beach, Florida (Joe Raedle/Getty Images/AFP) Joe Raedle/Getty Images/AFP
The predictive betting platform claimed the raid was retaliatory, following its users' overwhelming bets favoring Donald Trump's victory, which diverged significantly from mainstream polling predictions that favored Vice President Kamala Harris.
"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," Coplan wrote. "We are deeply committed to being non-partisan, and today is no different, but the incumbents should do some self-reflecting and recognize that taking a more pro-business, pro-startup approach may be what would have changed their fate this election."
According to Bloomberg News, the Department of Justice is investigating Polymarket for allegedly allowing US-based users to place bets on the platform.
The site enables users to wager on various yes-or-no questions. Fortune reported prior to the election that the platform showed evidence of wash-trading, an illegal form of market manipulation.
"This is obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election," Polymarket told media outlets, including The Wall Street Journal.
"Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections."
While betting and predictions on Polymarket are prohibited in the US, users frequently bypass restrictions using virtual private networks (VPNs). The company announced its return to US operations just a week ago, following a $1.4m fine paid to the Commodity Futures Trading Commission in 2022 for registration violations.
The FBI has not responded to requests for comment.
Tech industry leaders quickly rallied behind Coplan. Brian Armstrong, chief executive officer of Coinbase, the largest US cryptocurrency exchange, wrote on X: "This will backfire – they just made Polymarket even more powerful."
Elon Musk, the world's richest person and one of the president-elect's closest advisors, responded to the news writing, "This seems messed up."
Coplan, who has been photographed with Donald Trump Jr., claimed last week to have received calls from the president-elect's Mar-a-Lago resort during vote counting.
