FBI Raids Polymarket CEO’s Home Over Alleged U.S. Betting Violations

Shayne Coplan, the CEO of Polymarket, was raided by the Federal Bureau of Investigation (FBI).

On Wednesday, media outlets reported that the FBI raided the home of Polymarket’s CEO and seized electronic devices including his mobile phone.

Bloomberg said the raid came amid an investigation from the U.S. Department of Justice (DoJ) into whether Polymarket enabled U.S.-based users to place bets on the platform in violation of domestic regulations. Polymarket’s 2024 U.S. presidential elections markets drove billions worth of trade volume in recent months.

In January 2022, Polymarket reached a $1.4 million settlement with the Commodity Futures Trading Commission (CFTC) over accusations it offered more than 900 event-based binary options markets to U.S. users without the required registration. Following the settlement, the platform restricted access to U.S. users by blocking those with U.S.-based IP addresses.

Despite the geo-blocking measures, reports have indicated that many U.S.-based users circumvented the restrictions by using virtual private networks (VPNs).

Polymarket denies wrongdoing

Polymarket denied any wrongdoing in response to the raid, with a company spokesperson describing the incident as “political retribution by the outgoing administration.”

“We are deeply committed to being non-partisan,” Coplan said. “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.”

The FBI and the Department of Justice did not respond to The Defiant’s requests for comment.

On Nov.7, Polymarket indicated it plans to resume operations in the U.S. after a federal court of appeals allowed its competitor, Kalshi, to offer prediction markets on U.S. politics.

“I want to give a lot of credit to the people who fought the battle to go and legalize political prediction markets in America,” Coplan said during his first live TV interview on Squawk Box. “Now we are in the position to be aggressive around expansion.”

Post-election slump

While Polymarket enjoyed a surge in activity during the election, activity on the platform has dropped off since the election came to a close.

Daily trading volumes have dropped 78, to $41 million from $191.5 million on Nov. 6, according to Dune Analytics. Daily active users also fell sharply, decreasing by 60% to 21,253 from an all-time high of 53,409 on Nov. 6.

The largest market on the platform is now the 2025 Super Bowl Championship with $755 million in cumulative trading volume.

Polymarket has raised $74 million in funding since its seed round in 2020. Its most recent $45 million round in May featured notable investors, including Ethereum co-founder Vitalik Buterin.

On Sept. 23, rumors swirled that Polymarket is potentially eyeing another $50 million raise alongside the launch of a native token.