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The home of Shayne Coplan, the 26-year-old founder of Polymarket, was reportedly raided by the FBI on Wednesday(November 13). The blockchain-based prediction market company has described the raid as "obvious political retribution by the outgoing administration," according to multiple news outlets. The exact reasons for the raid, during which Coplan's mobile phone and other electronics were confiscated, have not been fully revealed. However, it is known that Americans are barred by law from gambling on offshore and unregulated betting platforms like Polymarket.
Polymarket, which allows users to bet on the outcomes of various events, had predicted a victory for Donald Trump in the 2024 presidential election. The platform showed Trump holding a 58.6% chance of winning on Election Day, a prediction that proved accurate. This prediction and the subsequent raid on Coplan's home have raised questions about the motives and proportionality of the action.
Fortune reports that critics, including those in the crypto industry, are questioning whether the administration deployed law enforcement resources to gather evidence of illegal betting or whether the raid constituted harassment. Brian Armstrong, CEO of the regulated cryptocurrency exchange Coinbase, warned that such heavy-handed measures could backfire on the Biden administration.
In a post on social media following the raid, Coplan suggested that the investigation might be politically motivated. He wrote, "It’s discouraging that the current administration would seek a last-ditch effort to go after companies they deem to be associated with political opponents."
He added that the raid would not alter his company’s non-partisan stance.
I'm also proud to say that the future of America, and in particular American entrepreneurship, has never been brighter. In the face of adversity, we build 🦅."