Coinbase CEO Accuses DOJ of Political Bias in Polymarket Investigation

• Coinbase CEO calls DOJ’s probe of Polymarket politically motivated amid rising scrutiny.
• DOJ targets Polymarket for possible breach of 2022 compliance deal with the CFTC.
• Polymarket faces potential ban in France over unlicensed betting amid U.S. investigation.

Coinbase CEO Brian Armstrong has sharply criticized the Department of Justice (DOJ) for its recent investigation into Polymarket, a crypto-based prediction market platform.

Armstrong, taking to social media platform X (formerly Twitter), argued that the DOJ’s actions were politically driven, suggesting they might unintentionally boost Polymarket’s influence. 

The investigation reportedly involves the seizure of devices belonging to Polymarket CEO Shayne Coplan. The DOJ suspects that Polymarket might have violated the terms of a 2022 settlement agreement with the Commodity Futures Trading Commission (CFTC), which had restricted the platform’s access to U.S.-based users.

As part of the settlement, Polymarket had agreed to pay a $1.4 million fine and adjust its compliance practices. However, recent evidence allegedly suggests that some U.S. users may still be able to access the platform, leading to renewed regulatory scrutiny.

The investigation has intensified following a surge in election-related trades on Polymarket, particularly bets predicting the re-election of former President Donald Trump. According to sources familiar with the investigation, this spike in activity has raised concerns that large-scale betting might influence public sentiment and sway voter opinions. 

Polymarket, however, has denied any wrongdoing, emphasizing that it has consistently taken measures to block access to U.S. participants. The company reiterated that it adheres to its CFTC settlement and has implemented additional safeguards to prevent unauthorized users from engaging on the platform. 

In response to the DOJ’s probe, Polymarket’s CEO Shayne Coplan criticized the investigation, describing it as a politically motivated effort by the current administration.

Coplan argued that regulators should instead focus on fostering a supportive environment for innovation rather than targeting platforms that facilitate open discussion and data analysis.

Polymarket has stressed that its platform is an information tool for understanding global events, including elections. Coplan defended the platform’s neutrality, asserting that Polymarket does not take sides in political matters. 

According to Coplan, the investigation appears to be a “last-ditch effort” to clamp down on platforms perceived to be aligned with certain political interests. The company has vowed to defend its operations and the rights of its community members.

While Polymarket navigates the challenges posed by U.S. regulators, it faces additional scrutiny abroad. France’s national gambling authority, ANJ, is reportedly considering a potential ban on Polymarket due to its alleged provision of unlicensed gambling services.