Key Takeaways
- Coinbase received a CFTC subpoena related to Polymarket.
- Polymarket is under scrutiny for alleged market manipulation.
- Some users bypassed Polymarket's U.S. restrictions via VPNs.
Coinbase has reportedly informed its users about receiving a subpoena from the Commodity Futures Trading Commission (CFTC) related to the crypto-based prediction platform Polymarket. A customer notice, dated Jan. 8, was shared online by EthHub co-founder Eric Conner.
“We write to inform you that Coinbase has been served with a subpoena … seeking general customer information that includes information related to your account,” the notice read.
Coinbase indicated that it “may be required” to share user account data with the CFTC unless a legal motion to quash the subpoena is served by Jan. 15, 2025.
Polymarket Faces Growing Scrutiny
The subpoena comes as Polymarket faces mounting regulatory challenges. In November 2024, the FBI raided the home of Polymarket CEO Shayne Coplan following Donald Trump’s presidential election victory. The platform had facilitated millions of dollars in betting, with some users earning up to $50 million.
Concerns about potential manipulation of Polymarket’s prediction markets have drawn regulatory attention worldwide. France’s Autorité nationale des jeux launched an investigation into the platform’s compliance with gambling laws in November 2024.
Though Polymarket blocked U.S. users after a $1.4 million settlement with the CFTC in 2022, reports suggest that some users bypassed restrictions via VPNs.
Coinbase and Polymarket have not commented on the subpoena as of publication.
