- CEO of Coinbase Brian Armstrong criticizes DOJ for its investigation into Polymarket.
- The DOJ is investigating Polymarket for allegedly accepted transactions from purchasers based mostly in the US.
- The FBI raided the Polymarket CEO's residence and seized his telephone and digital units.
Coinbase CEO Brian Armstrong has spoken out in opposition to the Justice Division's investigation into Polymarket, a crypto prediction market platform with shut ties to Coinbase. The 2 corporations have a historical past of collaboration, together with shared investments and collaboration on regulatory points.
In a now-deleted X publish, Armstrong expressed concern over the DOJ's actions, which he seen as politically motivated. He additionally instructed the investigation might finally profit Polymarket.
The DOJ has reportedly launched an investigation into Polymarket for allegedly authorizing transactions from US-based clients. The Federal Bureau of Investigation (FBI) raided the Manhattan residence of Polymarket CEO Shayne Coplan, taking his telephone and digital units.
Ryan Seam Adams, co-founder of the expertise podcast Bankless, mentioned he was alarmed by the FBI raid on Shayne Coplan. Adams mentioned authorities didn’t give a motive for the raid, calling the motion a particularly intimidating type of political vengeance.
In response to Adam's publish, Armstrong revealed that he deleted his earlier publish about authorities' investigation into Polymarket as a result of he didn't have all the small print in regards to the case. Nevertheless, he added that, from what he is aware of, the state of affairs appears worrying.
Notably, Polymarket was supposed to forestall buying and selling actions by customers based mostly in the US, per a 2022 settlement with the Commodity Futures Buying and selling Fee (CFTC). The platform turned very fashionable in the course of the US elections, predicting particular political outcomes, with customers betting on their favourite candidates.
Additionally Learn: Harris Ignores Crypto Rules as Trump Leads Polymarket with 52%
A French dealer's whale commerce in the course of the remaining election days added larger scrutiny to the platform, with opponents claiming Polymarket enabled manipulation of the underlying market. Polymarket responded to the authorities' claims, defending the platform as a instrument for folks to find out about updates, together with elections.
Denouncing the authorities' actions as politically motivated, Polymarket mentioned it could battle for justice, including that Polymarket is a “utterly clear” prediction market that helps everybody perceive world occasions.
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