NEW YORK — FBI agents conducted a raid early Wednesday morning at the New York City apartment of Shayne Coplan, the founder and CEO of Polymarket, a leading prediction betting platform, according to sources familiar with the matter. The purpose of the raid, which involved several agents entering the apartment around 6 a.m., has not been disclosed, and it is unclear whether Coplan or Polymarket is the direct target of an investigation.
Axios reported the breaking news earlier today.
Polymarket, which has gained prominence as one of the most active prediction markets in recent years, allows users to place bets on various real-world events, including elections. Though the platform has drawn significant attention, its use by Americans is restricted due to regulatory concerns. According to reports, a French trader won nearly $50 million on Polymarket, underscoring the platform’s international reach and potential for high-stakes bets.
The raid comes as Polymarket reportedly seeks additional venture capital, building on over $80 million previously raised from investors, including the influential Founders Fund, co-founded by billionaire Peter Thiel. The company has positioned itself as a transparent marketplace that provides insights into public sentiment around major events. However, its involvement in politically charged betting markets, particularly around elections, has led to questions about the platform’s regulatory compliance.
“This is obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election,” a spokesperson for Polymarket told Axios. “Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections.”
A federal law enforcement official confirmed to Axios that agents conducted a “court-authorized law enforcement activity” at Coplan’s building but did not offer further details on the nature of the investigation.
The raid adds to growing scrutiny of prediction markets, which have historically operated in a regulatory gray area in the United States. Polymarket’s operations, while popular overseas, may face heightened regulatory challenges as authorities focus on the legality and transparency of prediction platforms.
Coplan, who was reportedly at home when the raid took place, has not yet commented on the incident.