Polymarket CEO alleges 'political retaliation' by Biden administration after FBI raid on his home

This Wednesday, at 6:00 AM in Manhattan, New York, the FBI raided the home of Shayne Coplan, CEO of online predictions platform Polymarket. During the raid, federal agents seized his phone and electronic devices, the company confirmed.

Polymarket is a cryptocurrency-based predictions marketplace that recently gained popularity as a platform for betting on the U.S. presidential election.

Coplan, also founder of Polymarket, was sleeping when FBI agents arrived at his home and demanded he hand over his electronic devices, reported the New York Post.

While it is still unclear what motivated the FBI raid on Coplan, later, the head of the predictions and betting company himself claimed that it was all "political retaliation" by the Biden administration.

"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," Coplan said. "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."

"Polymarket has provided value to 10's of millions of people this election cycle, while causing harm to nobody. We're deeply proud of that," he added. "I'm also proud to say that the future of America, and in particular American entrepreneurship, has never been brighter."

Coplan's raid and subsequent indictment comes more than a week after the 2024 Presidential Election, where Donald Trump emerged as the winner. Polymarket, unlike the polls, gave the Republican front-runner the winner by a considerable margin over Harris, something that has earned the company criticism.

From statements picked up by Fox Business, a Polymarket spokesman rejected the questioning and said the platform simply functions as a public prediction market that allows people to better understand different current events, whether sporting or political.

"Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections. We charge no fees, take no trading positions, and allow observers from around the world to analyze all market data as a public good," the company's spokesperson said after the raid.

Polymarket has become quite a success, raising millions of dollars from investors such as Founders Fund, the Silicon Valley venture capital firm founded by billionaire Peter Thiel.

It has also raised money from several cryptocurrency personalities.

Polymarket gained particular attention after the debate between Donald Trump and President Joe Biden, when bettors began predicting Biden's withdrawal from the race with much anticipation and accuracy.

According to The Wall Street Journal, some Polymarket bettors made a lot of money off Trump's victory. In particular, a French citizen, known for his extensive experience in the market, eared a profit of approximately $85,000,000 for predicting not only the Republican candidate's win but also his historic performance with the popular vote.

Since 2022, following a settlement with the Commodity Futures Trading Commission (CFTC), Polymarket has blocked access to Americans after the company was accused of operating an unregistered derivatives platform. However, U.S. players can apparently circumvent the ban through VPN connections, assuming the legal risks of such trades.