Coinbase has reportedly been served with a subpoena from the Commodity Futures Trading Commission (CFTC) concerning the crypto prediction market platform Polymarket.
Coinbase has reportedly been served with a subpoena from the Commodity Futures Trading Commission (CFTC) concerning the crypto prediction market platform Polymarket.
The subpoena, disclosed in a customer notice on Jan. 8, seeks general customer information, including data related to user accounts.
The notice, shared on social media by Eric Conner, co-founder of EthHub, indicates that while no immediate action is required from users, Coinbase "may be required" to provide the requested account information to the CFTC. If Coinbase does not receive a formal motion to quash the subpoena by the close of business on Jan. 15, 2025, it may proceed to supply the information.
This development comes amid heightened scrutiny of Polymarket, particularly following a November raid by the FBI at the home of its CEO, Shayne Coplan.
The investigation gained traction shortly after the recent U.S. presidential election, where significant financial gains were reported by users betting on Republican Donald Trump's victory through Polymarket. Reports indicated that some investors profited up to $50 million from these bets.
Concerns regarding the potential manipulation of Polymarket’s decentralized platform have been raised by industry executives. Furthermore, on Nov. 7, 2024, France’s Autorité nationale des jeux (National Gaming Authority) reportedly initiated an investigation into Polymarket's operations and compliance with local gambling regulations.
Although Polymarket is headquartered in New York, it has barred U.S. residents from participating since 2022 due to a $1.4 million settlement with the CFTC over operating an unregistered derivatives trading platform. Despite these restrictions, some users allegedly circumvented the ban by using VPNs.
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