In a dramatic escalation, the FBI conducted an early morning raid at the Manhattan apartment of Polymarket CEO Shayne Coplan on Wednesday. According to a source with direct knowledge, agents seized Coplan's cellphone and other electronic devices. This move comes shortly after Polymarket's prediction markets correctly and controversially called Donald Trump's victory in the presidential election, raising questions about the platform's influence.
The 26-year-old Coplan was reportedly at home when federal agents arrived. While he handed over his devices, no charges or arrests have been made at this point, and it remains unclear whether Coplan or Polymarket are the central targets of an investigation. "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," a source told The Post, characterizing the incident as "grand political theater."
Polymarket, founded by Coplan in 2020, has become a flashpoint of debate due to its prediction markets, which brought in over $3.6 billion in election-related bets, including $1.5 billion on Trump and $1 billion on Vice President Kamala Harris, as analyzed by NBC News. This has fueled speculation about major bettors and the potential impact such markets may have on public perception and voter behavior. Coplan has been vocal in defending Polymarket as "nonpartisan," alleging that the raid was motivated by political bias. "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," he wrote on X. "Polymarket has provided value to tens of millions of people this election cycle, while causing harm to nobody."
A Polymarket spokesperson told NBC News that the raid amounts to "obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election." The spokesperson emphasized the platform's transparency, stating, "Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections. We charge no fees, take no trading positions, and allow observers from around the world to analyze all market data as a public good."
The U.S. Attorney's Office for the Southern District of New York declined to comment on the matter, according to spokesperson Nicholas Biase.
In a characteristically flippant post following the raid, Coplan wrote on X, "New phone, who dis?"
Polymarket has faced scrutiny before. In 2022, the Commodity Futures Trading Commission (CFTC) ordered the platform to halt U.S. operations and pay a $1.4 million fine for failing to register appropriately. Though Polymarket claims to ban U.S.-based trading, many users bypass restrictions using cryptocurrency, enabling them to trade anonymously.
The timing of the raid, just a week after Coplan announced plans for Polymarket to return to the U.S., has further fueled speculation. Reports linking billionaire Trump supporter Peter Thiel's financial backing to the platform, alongside photos of Coplan with Donald Trump Jr., have added intrigue. The FBI's probe, according to some, could be connected to claims of market manipulation tied to Polymarket's Trump-related betting.
Further complicating matters, French gambling authorities have launched their own inquiry into Polymarket's compliance with local regulations. A French trader, known as "Théo," reportedly earned $85 million on Trump bets via Polymarket. "To be frank, I'm a bit tired of the whole thing - I'd like to fade back into my normal daily life," Théo told the Wall Street Journal.
