What just happened? Polymarket, the crypto-betting platform under investigation in France after a user won $50 million betting on Trump to win the election, is making more unwanted headlines. The FBI has just raided the Manhattan apartment of CEO Shayne Coplan and seized his phone, just a week after his company accurately predicted an easy Trump win ahead of national polls.
According to a source cited by the New York Post, FBI agents stormed 26-year-old Coplan's apartment at 6 am on Wednesday, demanding he turn over his phone and other electronic devices. That evening, Copland wrote "New phone, who dis?" on X.
Unlike most mainstream polls that had Trump and Harris neck and neck or the latter slightly ahead, Polymarket had Trump winning easily. The site claims that the raid was politically motivated, a retaliation for its users betting overwhelmingly in favor of a Republican win.
It's "grand political theater at its worst," the source told The Post. "They could have asked his lawyer for any of these things. Instead, they staged a so-called raid so they can leak it to the media and use it for obvious political reasons."
The source also speculated that the government is being influenced by media reports accusing Polymarket of market manipulation and rigging its polls in favor of Trump.
"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."
Copland has not been arrested and has not been charged. No reason for the raid has been given.
Despite being headquartered in New York, Polymarket only allows users based outside of the US to place bets, the result of a 2022 settlement with the Commodity Futures Trading Commission that saw it pay a $1.4 million fine and pause trading for failing to register with the agency. The company said last week it would resume operations in the US.
Those in the US can still access the site by using a VPN. Bloomberg reports that the Department of Justice is investigating Polymarket over allegations it allows US-based users to bet on the site.
An investigation by two blockchain firms the week before the election found that Polymarket activity showed signs of wash trading, an illegal form of market manipulation where shares are bought and sold, often simultaneously and repeatedly, to create a false impression of volume and activity.
In May, Polymarket received a $45 million investment led by tech billionaire Peter Thiel. Copland has been photographed out with Donald Trump Jr. He also said last week that he fielded calls from Trump's Mar-a-Lago resort as votes were counted.
Last week saw reports that Polymarket was being investigated in France after a French businessman won $50 million betting on Trump to win. Polymarket said that it had investigated the trading activity and not found any information that the user behind it "manipulated, or attempted to manipulate, the market."
FBI raids Polymarket CEO's apartment, seizes his phone after platform predicted easy Trump win
