US Authorities Cease Investigations of Polymarket

By: Eva Baxter

U.S. authorities have recently concluded their investigations into Polymarket, a cryptocurrency prediction markets platform. The investigations were conducted by both the United States Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC), with the focus primarily on whether Polymarket had been accepting trades from U.S.-based users. This closure of investigations marks a significant regulatory milestone for the company, particularly as it approaches a substantial $200 million funding round.

The investigations, which had been active for several months, intensified following the 2024 U.S. elections when a significant number of users placed bets on the outcomes of various races. Polymarket has previously been under scrutiny and reached a $1.4 million settlement with the CFTC in 2022 to address regulatory compliance issues. The FBI was also involved in the investigations, having raided the home of Polymarket's CEO, Shayne Coplan, in November 2024, confiscating electronic devices as part of the probe.

This development comes at a crucial time for Polymarket as it prepares for a major funding round. The company has been focusing on expanding its platform capabilities while navigating the complex landscape of U.S. regulations. The conclusion of these investigations may instill further confidence among potential investors, aiding in the smooth facilitation of its anticipated financial growth.

Polymarket's situation underscores the ongoing challenges cryptocurrency platforms face in staying compliant with U.S. regulatory frameworks. As the crypto market continues to evolve, platforms will need to maintain strict adherence to regulatory requirements to avoid similar investigations. For Polymarket, this resolution offers a clean slate to advance its operations free from the shadow of legal scrutiny.