The FBI raided the home of the CEO of Polymarket, the company that predicted Donald Trump's presidential election, and seized his smartphone and other electronic devices, accusing him of accepting bets from users and manipulating the market illegally.



In the US presidential election, which was held on November 5, 2024 local time, Republican candidate former President Donald Trump defeated Democratic candidate Vice President Kamala Harris. In connection with this election campaign, it has been reported that the Federal Bureau of Investigation (FBI) conducted a search of the home of Shane Copel, founder and CEO of the blockchain-based prediction market ' Polymarket ,' and confiscated electronic devices such as smartphones.

Polymarket Investigated by DOJ for Alleged Use of Platform in US - Bloomberg
https://www.bloomberg.com/news/articles/2024-11-13/polymarket-investigated-by-doj-for-letting-us-users-bet-on-platform

Exclusive | FBI seizes Polymarket CEO's phone, electronics after betting platform predicts Trump win: source
https://nypost.com/2024/11/13/business/fbi-seizes-polymarket-ceos-phone-electronics-after-betting-platform-predicts-trump-win-source/

FBI raids home of Polymarket CEO Shayne Coplan
https://www.axios.com/2024/11/13/polymarket-fbi-shayne-coplan

The prediction market Polymarket is characterized by the fact that all bets and payouts are made in cryptocurrency, and users can place unlimited bets on their favorite candidates.

During the US presidential election, Polymarket saw active trading, with a user named 'Theo' betting $70 million (approximately 10.9 billion yen) on Trump's victory. In addition, unlike the mainstream poll results that say 'Trump and Harris have a 50-50 chance of winning,' Polymarket shows that as of November 4, 2024, Trump has a 58.6% chance of winning and Harris has a 41.4% chance of winning, and claims that 'it can predict political outcomes more accurately than traditional polls.'

The 2024 US presidential election was a close race in major media polls, but prediction gambling sites predicted Trump to have an overwhelming advantage - GIGAZINE



Additionally, as a result of the high profile betting on presidential elections on Polymarket, the French gambling regulator ( Autorité de régulation des jeux: ANJ ) has banned access to Polymarket from within France.

French regulators plan to ban access to 'Polymarket,' a platform that allows users to bet on anything - GIGAZINE



On the other hand, some voters have criticized Polymarket, saying that people placing bets on the platform are skewing public perception in Trump's favor and may be engaging in illegal market manipulation known as ' wash trading .'

In response, the FBI conducted a search of Mr. Coplan's home in Manhattan on November 13, 2024. They seized electronic devices, including smartphones. A Polymarket spokesperson said, 'This is a clear political retaliation by the current administration against Polymarket, which provided a marketplace that correctly predicted the outcome of the 2024 presidential election. Polymarket is a transparent prediction market that helps everyday people better understand the events that matter most to them, including elections,' criticizing the FBI.

'We are disappointed that the Administration is taking a last-ditch effort to go after companies like Polymarket that it perceives as having ties to its political opponents. We are deeply committed to nonpartisanship and will remain so. The Administration should reflect on its actions and understand that a more pro-business and pro-startup approach could have changed the fate of this election defeat,' Coplan said.

'Polymarket has provided value to tens of millions of people during this election without harming anyone, and we're incredibly proud of that,' he added.




Some users explained, 'If this raid was related to Polymarket and its gambling activities, subpoenas would be sent to Polymarket's lawyers. It is also likely that Polymarket's homes will be searched in parallel with Mr. Coplan's. However, this time the raid was limited to Mr. Coplan's home. This means that an investigation into Mr. Coplan's criminal investigation is underway.'

In response to Coplan's criticism of the administration and the FBI, Elon Musk, who has announced thathe will lead an organization on government efficiency in the next Trump administration, expressed his agreement with Coplan's criticism, writing on Indeed.




At the time of writing, the FBI had not disclosed the reason for the raid on Mr. Koplan's home. In response, Brian Armstrong, CEO of Coinbase, one of the largest cryptocurrency exchanges in the United States, criticized the FBI's actions, saying, 'This will backfire. They have only made Polymarket even more powerful.'


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