FBI Raids Polymarket CEO's Apartment Following Platform's Trump 2024 Election Prediction

Federal agents raided the Soho apartment of Shayne Coplan, the 26-year-old founder and CEO of Polymarket, early Wednesday morning. They seized electronic devices during the operation, according to reports from Axios and the New York Post. This raid happened just days after Coplan’s platform predicted Donald Trump would win the 2024 presidential election.

A source told the New York Post that FBI agents arrived at Coplan’s home around 6:00 a.m. They demanded access to his phone and other devices. It’s still unclear whether Coplan or Polymarket is under investigation.

Coplan started Polymarket in 2020 in New York. He briefly studied computer science at NYU but dropped out after just one semester. Polymarket is a blockchain-based prediction marketplace. It allows users to bet on various events, like political elections and economic indicators. Users buy and sell shares tied to specific outcomes. So far this year, Polymarket has seen over $3 billion in trading volume.

While you don’t need blockchain technology to create a betting market, Polymarket uses a network called Polygon. This network operates 24/7 and is built on Ethereum, which helps keep transaction costs low. Polymarket accepts wagers in U.S. dollars through the stablecoin USDC. Since July, customers can also use debit and credit cards to place bets.

In an interview with Forbes in August, Coplan said, “Polymarket effectively takes what otherwise would be an Internet yelling match and turns that into a market where the person who's right wins.”

The company has raised $74 million from investors, including Peter Thiel's Founders Fund and Ethereum co-founder Vitalik Buterin. Notable figures like former CFTC chairman Chris Giancarlo and forecasting expert Nate Silver are on its advisory board.

A Polymarket spokesperson suggested that the raid was politically motivated. They claimed, “This is obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election.” They added, “Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections.”

As of now, neither Polymarket nor the FBI has responded to requests for comment from Forbes.