Polymarket Investigations Dropped by Justice Department, CFTC

The U.S. Department of Justice and Commodity Futures Trading Commission have ended investigations into crypto-powered prediction markets platform Polymarket, a source familiar with the cases confirmed to Decrypt.

Bloomberg first reported the news, citing an unnamed source familiar with the actions. Polymarket founder and CEO Shayne Coplan then confirmed the Bloomberg report via an X post.

“Eight months ago, on election night, we were on top of the world after Polymarket called the election,” Coplan wrote. “Eight days later, the FBI broke down my door at 6am and took all my computers and phones, looking for anything that could imply foul play.”

“While traumatic, it etched the story of Polymarket's accuracy, and the ensuing resistance, into the history of American politics,” he continued. “And today, I'm happy to announce that this chapter of  the story is over. After cooperating and engaging, we've been cleared of any wrongdoing. Justice prevailed.”

U.S. authorities last year began investigating the platform for allegedly allowing Americans to use its services. Polymarket had previously reached an agreement with the CFTC in 2022 after failing to register with the regulator.

The DOJ refused to comment when Decrypt reached out, and the CFTC and Polymarket did not immediately respond to questions.

Polymarket is a website that runs on Ethereum scaling network Polygon. It allows users to bet on the outcomes of everything from celebrity pregnancies and the war in the Middle East to the future price of Bitcoin. 

It made headlines during the U.S. presidential election, as users bet billions of dollars that President Trump would win—with a consensus forming ahead of traditional polling.

Since President Trump won the presidency last year, authorities—namley the Securities and Exchange Commission—have dropped a number of investigations into crypto firms.

Trump campaigned on a ticket to help the digital asset space and received backing from prominent figures in the industry.

Additional reporting by André Beganski

Editor's note: This story was updated after publication with additional details.