Feds probe whether Polymarket violated 2022 deal to block US merchants: report | Latest Tech News
Polymarket is going through renewed scrutiny from federal regulators over whether it violated a 2022 settlement requiring the prediction market giant to block American merchants from its offshore platform, according to a report.
The Commodity Futures Trading Commission is investigating whether the New York-headquartered company — which runs a platform based in Panama — took enough steps to block US customers following the settlement, GWN reported Tuesday. It cited two people acquainted with the matter.
The inquiry covers Polymarket’s strategies for figuring out prospects’ places and its US promoting actions.
Prediction market giant Polymarket is going through a recent federal investigation into whether it violated a 2022 settlement requiring it to keep American merchants off its offshore platform. REUTERS
News of the probe comes just days after The Post was first to report that Polymarket dismissed a top govt who was intently allied with CEO Shayne Coplan.
The exec, Matthew Modabber, served as Polymarket’s chief advertising officer starting in January 2024. He was let go following a string of incidents that prompted an inside investigation.
The CFTC inquiry considerations the company’s past safeguards fairly than current access to its offshore platform, a source acquainted with the state of affairs told The Post.
The commission is individually inspecting a newer, regulated US operation that Polymarket runs. That probes focuses on buyer registration procedures and trader protections, GWN reported.
The latest probe follows comparable investigations that the CFTC and Justice Department closed last yr without bringing expenses. Neither company has publicly explained those choices.
Polymarket agreed to prohibit US trading on Polymarket.com in January 2022 after the CFTC accused it of illegally working an unregistered derivatives trading platform.
The CFTC inquiry considerations the company’s past safeguards fairly than current access to its offshore platform, a source acquainted with the state of affairs told The Post. Bloomberg via Getty Images
The company was fined $1.4 million and agreed to stop offering access to trading that didn’t comply with federal laws.
The restrictions prompted questions during the 2024 presidential election, when billions of {dollars} in wagers poured into prediction markets amid considerations that Americans had been utilizing digital non-public networks, or VPNs, to disguise their places.
The scrutiny culminated in an FBI raid on Coplan’s Manhattan home in November 2024.
In July 2025, the exec announced that the CFTC and Justice Department had closed their investigations, declaring that Polymarket had been “cleared of any wrongdoing.”
Six days later, the company announced its $112 million acquisition of a federally regulated derivatives exchange and clearinghouse, paving the best way for its return to the US market.
Polymarket started rolling out its federally regulated US platform to choose American prospects late last yr, marking its return to the home market after almost 4 years.
The probe comes as prediction markets have expanded quickly under President Trump, whose son Donald Trump Jr. is an investor in Polymarket.
The industry’s fast growth has also raised considerations among lawmakers and advocacy teams that merchants may exploit confidential info to revenue from bets on real-world occasions.
In July 2025, Shayne Coplan announced that the CFTC and Justice Department had closed their investigations, declaring that Polymarket had been “cleared of any wrongdoing.” Bloomberg via Getty Images
In April, federal authorities charged US Army soldier Gannon Ken Van Dyke with utilizing labeled intelligence about the operation to seize Venezuelan chief Nicolás Maduro to make more than $400,000 in income on Polymarket’s offshore platform.
Prosecutors alleged that Van Dyke used a VPN to disguise his location and gain access to the location. He has pleaded not guilty.
Polymarket said at the time that it had referred the matter to authorities.
The company has maintained that its safeguards block the overwhelming majority of unauthorized American merchants and that makes an attempt to evade its geographic restrictions are unusual.
Spokespeople for the CFTC and Polymarket declined to remark to GWN. The company also declined to remark to The Post.
Stay informed with the latest in tech! Our web site is your trusted source for breakthroughs in artificial intelligence, gadget launches, software program updates, cybersecurity, and digital innovation.
For recent insights, skilled coverage, and trending tech updates, go to us commonly by clicking right here.
