Polymarket CEO Shayne Coplan received unusual guests early Wednesday, November 13, 2024 morning, who seized his phone and other electronics. America’s Federal Bureau of Investigation (FBI) officials raided the 26-year-old entrepreneur’s home only a week following Donald Trump’s victory prediction by his election betting platform.
According to reliable sources and an X post that has gone viral, the law enforcers arrived at Coplan’s residence at 6:00 am and demanded his electronic devices. Sources have described the developing story as a “political theatre,” believing the law enforcement officials could have consulted whatever they were looking for through attorneys. The sources stated that the Biden administration could call Donald Trump’s victory prediction “market manipulation, or rigging for Trump to win.’
Polymarket CEO Shayne Coplan Was not arrested.
While the FBI officials did not arrest Polymarket CEO Shayne Coplan, a Wednesday evening report on Bloomberg suggested that the Department of Justice (DOJ) was investigating the betting firm for allowing US residents to bet on the site. When contacted for comments on the development, a company spokesperson declined to comment but went on to state that it looked obvious that the government could be seeking political retribution against the company “for providing a market that correctly called the 2024 presidential election.”
Both the FBI and DOJ also declined to comment on the raid on the home of Polymarket CEO Shayne Coplan. The betting site gained tremendous attention in the run-up to the presidential race between Trump and Vice President Kamala Harris when it placed the pro-crypto Trump ahead of the Democratic Party candidate. The betting form that doesn’t allow US residents to trade also became the centre of attention after an anonymous France-based Polymarket whale placed an enormous emphasis on Trump beating Harris in the election. For all his efforts, Coplan made $46 million in profits from Donald Trump’s prediction of victory.
Trump Win a Vindication of Prediction Markets
Polymarket CEO Shayne Coplan runs a free public prediction firm that sheds light on different events, including elections. According to the company’s spokesperson, they don’t collect any fees besides not taking “positions in any markets, and publish markets’ data for free.” By the time the polls were closing during election night, the firm had odds of Trump winning at roughly 58%. However, as the night progressed, Trump’s odds of winning rose rapidly and stood at roughly 95% by 11:43 pm.
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For an entire month before the elections were held, polls by prediction market players showed that Trump was ahead of Kamala Harris, with odds at 67% in favour of the now-president-elect. However, last Wednesday, Polymarket CEO Shayne Coplan stated via an X post that the Trump campaign team knew of their potential victory through his firm’s prediction.
The Raid has Attracted Sharp Criticism
Unlike the prediction markets, traditional opinion polls failed to show a clear leader, stating that none of the two leading candidates would break the margin of error in key states. With Coplan calling Donald Trump’s victory prediction a vindication of prediction markets, the November 5 election also marked the first time US residents could legally bet on an election outcome.
The raid by the FBI on the home of Polymarket CEO Shayne Coplan has attracted sharp criticism from different figures within the technical and cryptocurrency space. Coinbase CEO Brian Armstrong used an expletive word as he wondered what was wrong with the Biden administration, adding that “this will backfire – they just made Polymarket even more powerful.” SpaceX and Tesla CEO and a strong supporter of President-elect Elon Musk, who is poised to become an official in the incoming administration, said the idea of the raid “seemed messed up.”
Conclusion
The Polymarket betting platform was founded in 2020 and allows fans to bet on different upcoming events, including weather patterns, sports events, and now election outcomes. The company blocked American users beginning in 2022 following a $1.4 million settlement to the US Commodity Futures Trading Commission (FCTC) after it failed to register with the agency. The company is now back in the headlines after the successful prediction of Donald Trump’s victory that flew in the face of opinion polls, showing the race to be dead heat.
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