It looks like the Biden administration has decided to burn all its crypto bridges by declaring war on a popular betting platform that dared to predict Trump’s election victory. Not only that, but the bettors even accurately called the states that the future president would win. In response, the US Department of Justice launched a public investigation into the platform. So, whose heads were the first to roll?

The U.S. Department of Justice is investigating the crypto betting platform Polymarket for allegedly allowing U.S. users to place bets. The 26-year-old founder, Shayne Coplan, was rudely awakened in his Manhattan apartment at 6 a.m. by law enforcement officers demanding his phone and other electronic devices. No word yet on whether they also confiscated his toaster, microwave, or dishwasher. At least, Coplan wasn’t arrested or charged.

Surprisingly, the founder seemed to be in good spirits on Wednesday afternoon, ironically referencing the morning’s events:

A source close to the matter commented:

This is political theater at its absolute worst. They could’ve easily asked his lawyer for any of this. Instead, they staged a so-called raid just to leak it to the media and weaponize it for obvious political purposes.

The FBI investigation kicked off just a week after Coplan announced that Polymarket was planning a return to the U.S.

Did Its Trump Predictions Trigger a DOJ Investigation?

Polymarket had a huge run during the U.S. presidential election, with billions of dollars riding on the outcome. Polymarket traders pegged Donald Trump as the likely winner, and, as it turned out, they were right.

Coplan wasn’t given a reason for the raid, but insiders suspect it’s political payback. Supposedly because Polymarket accurately predicted Trump’s smooth victory over Vice President Kamala Harris, in stark contrast to traditional polls.

A company spokesperson commented:

This is clearly political retribution by the outgoing administration against Polymarket for providing a marketplace that correctly forecasted the outcome of the 2024 presidential election.

The platform, which gave Trump a 58.6% chance of winning the morning of Election Day versus Harris`s 41.4%, has also been linked to Trump and his allies.

Billionaire Trump supporter Peter Thiel funneled around $70 million into Polymarket, and Coplan was even seen in friendly conversation with Donald Trump Jr.

The Real Story Behind the Raid 

As part of its agreement with the Commodity Futures Trading Commission (CFTC), Polymarket must block traders in the U.S. from accessing its platform.

Back in 2022, this online gambling platform had to halt operations in the U.S. and pay a $1.4 million fine to settle allegations from the commission that it hadn’t registered with the agency. Since then, the platform has been strictly off-limits to American users, at least, on paper.

A CFTC spokesperson stated:

Polymarket is bound by the terms of its agreement with the CFTC. Period. This means they cannot accept any transactions from people residing in the United States or U.S. citizens, as outlined in the order. It’s pretty clear-cut. The company must comply with the law.

However, despite the official ban, savvy Americans can still access the platform using virtual private networks (VPNs) to skirt the restrictions.

Attorney Aaron Brogan noted:

Legally, these markets are supposed to have limited overlap with U.S. users, but in practice, I’ve heard plenty of stories about people stateside using VPNs to log into Polymarket.

In response, Polymarket issued a statement asserting that it is a “fully transparent prediction market that helps ordinary people better understand world events. The platform will defend itself and its community,” adding that the DOJ raid was politically motivated.

Shayne Coplan doubled down on this sentiment, insisting that the accusations are driven by politics, emphasizing that their platform remains deeply committed to non-partisan.

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