The FBI's shocking pre-dawn raid on the founder of election gambling site Polymarket turned out to be part of a criminal investigation into whether the company accepted bets from US users. This would violate the agreement the company had with the government.
The Justice Department ordered a “court-authorized law enforcement operation” at Shane Coplan's Manhattan apartment on Wednesday as part of a joint investigation with the FBI, officials told the Post.
As The Post exclusively reported, federal authorities executed a search warrant to seize Mr. Coplan's electronic devices, including his cell phone. Koplan, the 26-year-old tech whiz behind the popular site that accurately predicted Donald Trump's easy victory over Vice President Kamala Harris, outperformed last week. Opinion polls predict a close race.
A Polymarket spokesperson told the Post that Coplan has not been arrested or charged.
The FBI and the U.S. Attorney's Office for the Southern District of New York declined to comment on the 6 a.m. raid on Coplan's Soho Pad.
But two sources close to the matter told the Post on Thursday that they “understand” the federal investigation is related to allegations of illegal gambling.
Polymarket said the company “stands up for ourselves and our communities.”
“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.
Officials previously told the Post they believed the attack was political retaliation by the defeated Biden-Harris administration.
Coplan, who is bankrolled by prominent Republicans including Peter Thiel, reiterated this claim in a post on X late Wednesday.
“It is disheartening that the current administration would seek, as a last resort, to go after companies it deems to have ties to political opponents,” he wrote.
“We are deeply committed to being nonpartisan, and today is no different. But I think incumbents could do better in this election if they reflected a little and took a more pro-business, pro-startup approach. We must realize that our fate could have been different.”
Venture capitalist Joe Lonsdale responded to Coplan's post, criticizing partisanship within federal agencies.
“We have some great agents, but most of the FBI needs to be formally reorganized and rid of political actors so we can refocus on dangerous crime, the Chinese Communist Party, cartels, etc. If he gave the CEO any trouble, I hope he gets pardoned” soon. There is no more political retaliation,” Lonsdale wrote.
His wishes may rest in the hands of Matt Gaetz, a prominent anti-retributionist who was tapped by President-elect Trump to be attorney general hours after the attack.
On Thursday, President Trump nominated Jay Clayton to run the Southern District of New York.
Polymarket was banned from gambling in the United States after agreeing to a settlement with the Commodity Futures Trading Commission in 2022. He was charged with failing to register with the company and fined $1.4 million.
Despite this, the company, which is registered in France, reportedly received $3.7 billion in bets on the election, which Trump won by a landslide in the Electoral College. The 45th president is also the first Republican to win the popular vote since 2004.
A former Polymarket employee told the New York Times that it was an “open secret” that US users could place bets on the site behind a virtual private network. The report said some customers took to social media to exchange tips on how to circumvent the U.S. ban.
Sources close to the company told the Post that a number of regulations are in place to prevent U.S. users from using VPNs to circumvent the ban.
The source did not comment on whether US users were able to bet on Polymarket.
The raid came a week after Koplan announced plans to bring the platform back to the United States.
Polymarket came under increased scrutiny after the election, when a mysterious French trader made a whopping $85 million in profits betting on Mr. Trump, according to the Wall Street Journal.
Speculation swirled that the “French Whale,” also known as Theo, was trying to tip the scales in President Trump's favor. Mr Teo denied allegations that he was trying to influence the election results, insisting his bets were simply to make money.
“I have nothing further to add,” Teo told the Journal on Monday. “To be honest, I'm a little fed up with everything. I want to get back to my normal routine.”
Polymarket is said to have ties to the president-elect and his allies.
Forbes magazine reported earlier this year that billionaire Trump supporter Peter Thiel had raised $70 million for the company.
And Coplan is Photographed with Donald Trump Jr.
A week before the election fortune report Analysts at a cryptocurrency research firm said they found evidence of wash trading in Polymarket. This is illegal market manipulation in which traders buy and sell the same entity to create a false impression about market activity. Polymarket told Fortune there are provisions prohibiting market manipulation.
The betting platform has also attracted the attention of France's gambling regulator, Autorité Nationale des Jeux.
“We are aware of the existence of this site and are currently investigating its operation and compliance with French gambling law,” a spokesperson said. regulators told Bloomberg.
The National Autonomous Region did not respond to requests for comment.
Polymarket declined to comment on the French investigation.
