After an FBI raid on Polymarket CEO Shayne Coplan’s residence, Bloomberg reports that the DOJ has initiated an investigation into the platform. Bloomberg reporters Myles Miller and Lydia Beyoud attribute the information to a “person familiar with the matter,” who confirmed knowledge of the rumored inquiry. The individual asked for anonymity when disclosing the information to Miller and Beyoud.

Polymarket made waves this year with its massive trading volumes and high-stakes bets leading up to the 2024 U.S. election showdown between Donald Trump and Kamala Harris. Many speculate that by Oct. 24, Polymarket’s bettors had already forecasted the winner, just days before Trump’s victory.

Allegations point to the DOJ’s investigation potentially being triggered by claims that Polymarket allowed U.S. users to join in on the trading action. In a statement to reporters, Polymarket described itself as “a fully transparent prediction market.” Meanwhile, Bloomberg’s coverage added an editorial suggesting that U.S. users managed to find ways to place bets on the platform.

As Polymarket faces scrutiny from federal authorities, the increased attention highlights the evolving regulatory approach toward decentralized trading platforms, especially when they play a role in politically charged events like elections. Following the FBI raid and reports of an investigation, Polymarket shared a video on X celebrating trailblazing rebels who have reshaped the world. “In the face of adversity, we build,” Polymarket said.

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