The Federal Bureau Of Investigation, on Wednesday, raided the home of Polymarket CEO Shayne Coplan as part of a Justice Department investigation into allegations that the crypto prediction platform allowed U.S.-based users to place bets in violation of regulatory agreements.

Coplan responded on social media, expressing dismay over what he characterized as “a last-ditch effort” by the administration to target companies perceived to be associated with political opposition.

Coplan stated Polymarket was non-partisan, and that “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 added that Polymarket had contributed value to tens of millions of users this election cycle without causing harm.

The investigation centers on claims that Polymarket allowed American users to engage in trades on its platform, a direct breach of an agreement reached with the Commodity Futures Trading Commission (CFTC) in 2022, under which Polymarket was to prevent U.S.-based users from making transactions.

This agreement followed concerns about regulatory compliance, given that U.S. law imposes strict limits on certain types of prediction markets.

In response, Polymarket implemented regional restrictions to block access for American users, but recent evidence suggests possible gaps in this compliance.

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Leading up to the 2024 presidential election, Polymarket experienced a surge in activity, gaining popularity as an alternative to traditional polling with users betting on electoral outcomes.

The platform positions itself as a more accurate predictor, boasting no betting limits, unlike competing platforms that enforce strict wagering caps.

This open approach attracted a considerable user base, particularly as the Nov. 5 election approached.

However, just days before the election, a significant transaction by a high-stakes French investor—known colloquially as a “whale”—placed massive bets in favor of Donald Trump.

This move intensified scrutiny on the platform, raising concerns among Polymarket critics who suggested these wagers could sway public opinion.

“The future of America, and in particular American entrepreneurship, has never been brighter. In the face of adversity, we build,” Coplan further said.

For more insights on crypto regulations and the future of digital assets, consider attending Benzinga’s Future of Digital Assets event on Nov. 19.

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