FBI Raids Polymarket CEO's Home Amid Investigation into U.S. User Access, Sparking Political Motivation Allegations

Authorities recently conducted a search at the home of Polymarket CEO Shayne Coplan. They seized his cellphone and other electronic devices during the raid.

This situation has raised eyebrows in the crypto community. Some executives have suggested—though without evidence—that the raid was politically motivated.

According to reports from the New York Post, the FBI searched Coplan's apartment in New York City early Wednesday morning. This investigation is being led by attorneys from the Southern District of New York, a part of the Department of Justice, as noted by Bloomberg and the New York Times.

The focus of the investigation is whether Polymarket allowed U.S. users to access its betting platform. Bloomberg highlighted that the platform had previously reached a $1.4 million settlement with the Commodity Futures Trading Commission in 2022 to prevent U.S. users from betting on the site.

Neither Polymarket nor the FBI has commented on the raid yet. A spokesperson from the Southern District of New York also declined to provide any details.

Polymarket offers decentralized prediction markets. Users can bet on various outcomes, including political races and sports events. The platform gained significant attention during the U.S. presidential election, with its odds frequently appearing in major media outlets.

Interestingly, while polls suggested a tight race between Vice President Kamala Harris and former President Donald Trump, Polymarket consistently leaned toward Trump. After Trump's election win, supporters of the platform pointed to this outcome as proof of its effectiveness.

Following the raid, Coplan hinted that the FBI's actions might be linked to the platform's pro-Trump stance. He expressed disappointment that the current administration would target companies associated with political opponents.

Other crypto figures echoed Coplan's sentiment. Nic Carter, a partner at Castle Island Ventures, described the situation as "obvious political retribution." Mike Dudas, another crypto investor, added that it painted a clear picture of political retaliation.

As of now, Polymarket has not provided any evidence to back up claims that the raid was politically motivated.

Update on November 14: The Southern District of New York has declined to comment on the situation.