FBI raided home of Polymarket CEO over alleged illegal bets by US users: sources
The FBI’s shocking predawn raid against the founder of election gambling site Polymarket was part of a criminal probe into whether the startup accepted bets from US users — which would violate a deal the company had made with the government, The Post has learned.
The Department of Justice ordered Wednesday’s “court-authorized law enforcement activity” at the Manhattan apartment of Shayne Coplan as part of its joint investigation with the FBI, sources told The Post.
As The Post exclusively reported, the feds executed a search warrant to seize electronic devices including the phone of Coplan, the 26-year-old tech whiz behind the popular site that correctly predicted Donald Trump’s easy victory over Vice President Kamala Harris last week — outperforming polls forecasting a close race.
Coplan was not arrested and has not been charged, a Polymarket spokesperson told The Post.
The FBI and the US attorney’s office for the Southern District of New York declined to comment on the 6 a.m. raid on Coplan’s Soho pad.
However, two sources close to the matter told The Post on Thursday that it is their “understanding” that the federal investigation relates to allegations of illegal betting.
Polymarket said the company would “stand up for ourselves and our community.”
“Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections,” the company said in a statement.
Sources had previously told The Post they suspected the raid was political retribution by the defeated Biden-Harris administration.
Coplan, whose company has received funding from prominent Republican backers including Peter Thiel, echoed the allegation in a post on X late Wednesday.
“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.
“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.”
Venture capitalist Joe Lonsdale responded to Coplan’s post by calling out partisanship within the federal agencies.
“There are great agents, but a large % of the FBI must be officially reorganized and GUTTED, political actors removed so they can focus back on dangerous crime, CCP, cartels, etc. If they give this CEO any trouble, I hope he’s pardoned immediately. No more political retribution,” Lonsdale wrote.
His wish may fall to noted anti-retributionist Matt Gaetz, who was tapped by President-elect Trump for attorney general hours after the raid.
On Thursday, Trump nominated Jay Clayton to run the Southern District of New York.
Polymarket is banned from taking bets in the US after agreeing to a settlement with the Commodity Futures Trading Commission in 2022. It was accused of failing to register with the agency and fined $1.4 million
Nonetheless, the company, which is registered in France, took in a reported $3.7 billion in bets on the election, which Trump won in an Electoral College landslide. The 45th president was also the first Republican to win the popular vote since 2004.
A former Polymarket employee told the New York Times it was an “open secret” that users in the US could still bet on the site by hiding behind virtual private networks. Some customers used social media to swap tips on how to circumvent the US ban, the outlet reported.
A source close to the company told The Post there are a number of controls in place to prevent US users from using VPNs to get around the ban.
The source did not comment on whether any US users were able to place bets on Polymarket.
The raid comes a week after Coplan said the platform is planning a return to the US.
Polymarket drew added scrutiny after a mystery French trader raked in a whopping $85 million in profits on Trump bets after the election — roughly $50 million more than was previously reported, according to The Wall Street Journal.
Speculation swirled that the “French whale” — who goes by the alias Théo — was trying to tip the scales in Trump’s favor. Théo claimed his bets were simply about making money and denied allegations that he was trying to influence the election outcome.
“I have nothing more to add,” Théo told the Journal on Monday. “To be frank, I’m a bit tired of the whole thing — I’d like to fade back into my normal daily life.”
Polymarket has been linked to the presidenct-elect and his allies.
Billionaire Trump supporter Peter Thiel raised $70 million in funding for the company, according to a Forbes report earlier this year.
And Coplan has been photographed looking chummy with Donald Trump Jr.
One week before the election, a Fortune report said analysts at crypto research firms found evidence of wash-trading on Polymarket — an illegal form of market manipulation in which a trader buys and sells the same entity to create a false impression of market activity. Polymarket told Fortune its terms prohibit market manipulation.
The betting platform has also drawn the attention of France’s gambling regulator, Autorité Nationale des Jeux.
“We are aware of this site and are currently examining its operation and compliance with French gambling legislation,” a spokesperson for the regulator told Bloomberg.
The Autorité Nationale des Jeux did not immediately respond to a request for comment.
Polymarket declined to comment on France’s investigation.
