The FBI was investigating the possibility that Polymarket engaged in illegal betting during the presidential election when agents conducted a raid this week.
Shayne Coplan, the 26-year-old CEO of the gambling firm that correctly predicted the outcome of the race for the White House, was ordered to hand over his phone and electronics on Wednesday.
His home in Soho was raided in the early hours of Wednesday, but Coplan was neither arrested nor charged.
Sources claimed that the FBI was investigating whether his startup was accepting bets from users in the US, which would violate a 2022 agreement he made with the government, according to Bloomberg.
In January 2022, the Commodity Futures Trading Commission settled a dispute with Polymarket, ordering the startup to pay a $1.4 million fine for running unregistered “bet your beliefs” bets.
As part of that agreement, Polymarket promised to prevent US-based traders from placing bets on the platform.
Outside the US, users can bet an unlimited amount of money on candidates of their choice.
Polymarket has maintained that security measures are in place to track and block US users from betting on the platform.
Shayne Coplan, the 26-year-old CEO of the gambling firm that correctly predicted the outcome of the race for the White House, was ordered to hand over his phone and electronics on Wednesday
Polymarket signaled for weeks that Trump would win, and the once low-profile site turned out to be right — despite raised eyebrows from many experts
In the days leading up to the election, a French account holder bet about $30 million on Trump to win the election, raising concerns that this could skew the newly elected president’s perceived popularity.
Hours after the raid, Coplan broke his silence on the investigation, slamming the “current administration” for targeting him.
“It is disheartening that the current administration is making a last-ditch effort to go after companies they believe are associated with political opponents,” he wrote on Elon Musk’s X.
“We strongly believe in being nonpartisan, and today is no different, but incumbents need to do some self-reflection and recognize that a more pro-business, pro-startup approach could have changed their fate this election . .
“Polymarket has added value to tens of millions of people this election cycle while harming no one.
‘We are extremely proud of that. I’m also proud to say that the future of America, and especially American entrepreneurship, has never been brighter.”
Musk himself, one of the most outspoken and generous donors to Trump’s campaign, responded to the post, writing, “Indeed.”
Separately, Coplan wrote “new phone, who’s there?”, seemingly trying to make light of the revelation that his phone was seized during the search.
Forecasting whiz Shayne Coplan (pictured) and his start-up Polymarket proved more accurate than pollsters as traders bet on an easy Donald Trump victory
But in the wake of his predictions, the CEO has now had his phone and electronics seized by the FBI
An insider with knowledge of the investigation said the decision to execute the search warrant as part of a raid was “grand political theater at its worst.”
“They could have asked his lawyer for all these things. “Instead, they staged a so-called raid so they could leak it to the media and use it for obvious political reasons,” the source told the paper. New York Post.
“This is clear political retaliation by the outgoing administration against Polymarket for providing a market that rightly called the 2024 presidential election,” the source added.
Polymarket indicated for weeks that Trump would win, and the once low-profile site turned out to be right — despite raised eyebrows from many experts.
Coplan said in a post on X after the results were announced: “Make no mistake, Polymarket single-handedly called the election. The global truth machine is here, powered by the people.’
Polymarket said it is a “completely transparent prediction market.”
“We charge no fees, take no trading positions and enable observers from around the world to analyze all market data as a public good.”
Critics question Polymarket’s reliability and how representative it is of the American public.
The site has humble beginnings, with Coplan sharing a photo of his “office,” which was actually in his bathroom, four years ago.
The young entrepreneur has kept his personal political leanings hidden, but recently had breakfast with Florida Governor Ron DeSantis.
Coplan said the company’s profile was boosted after it rightly called Joe Biden’s withdrawal from the race.
Coplan was reportedly not arrested or given a reason for the raid, but it is believed to be related to his accurate predictions that outsmarted traditional polls.
However, he maintains that his site remains strictly impartial.
“We’re just market nerds who think prediction markets provide the public with a much-needed alternative data source,” Coplan previously said. ‘Polymarkt is not about politics.’
Polymarket, Kalshi and other betting platforms have quickly emerged as a way to pour money into elections and gauge who is ahead, after successive cycles in which pollsters’ predictions crashed and burned.
Bettors place ‘trades’ on a candidate and receive a payout if they back the correct outcome.
More and bigger bets on a frontrunner increase a candidate’s chances, while at the same time lowering the gamblers’ returns.
Opinion polls, which ask voters about how they plan to vote and then process that data, had suggested a tight race, including in the seven swing states that decided the election.
But they underestimated Trump’s national support. He went on to win the popular vote, the Electoral College and all seven swing states.
DailyMail.com has contacted the FBI for comment.