Polymarket Cleared by DOJ CFTC After 2024 Election Betting Probe

The U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) have concluded their investigations into Polymarket, a blockchain-based prediction market platform. This decision marks a significant regulatory milestone for the company, which has been under scrutiny for several months. The investigations were initiated to determine whether Polymarket was allowing U.S.-based users to place bets on its platform, potentially violating regulatory guidelines.

The probes intensified following the 2024 U.S. elections, during which many users were actively betting on the outcomes of various races. In November 2024, the Federal Bureau of Investigation (FBI) conducted a raid on the home of Polymarket CEO Shayne Coplan, seizing his electronic devices as part of the investigation. This action underscored the seriousness with which authorities were treating the potential violations.

The closure of these investigations comes at a pivotal time for Polymarket, as the company is reportedly preparing for a $200 million funding round. The resolution of these regulatory issues is likely to bolster investor confidence and facilitate the company's future growth. The decision to drop the investigations also signals a potential shift in the regulatory stance towards crypto-based platforms, reflecting a more favorable environment for digital assets under the current administration.

The end of the investigations was confirmed by a person with direct knowledge of the matter, although neither Coplan nor Polymarket had made any public statements regarding the developments at the time of the announcement. This closure follows a previous settlement reached by Polymarket with the CFTC in 2022, where the company agreed to pay $1.4 million to resolve earlier regulatory concerns. The resolution of these investigations is expected to pave the way for Polymarket to continue operating without the shadow of regulatory uncertainty, allowing it to focus on expanding its services and user base.