Coinbase CEO Condemns DOJ Probe into Polymarket

• Coinbase CEO Brian Armstrong criticizes the DOJ for its investigation on Polymarket.
• The DOJ probes into Polymarket for allegedly accepting trades from US-based shoppers.
• The FBI raided Polymarket CEO’s house, seizing his cellphone and digital gadgets.

Coinbase CEO Brian Armstrong spoke out in opposition to the Division of Justice’s investigation into Polymarket, a crypto prediction market platform with sturdy ties to Coinbase. The 2 corporations have a historical past of collaboration, together with shared investments and dealing collectively on regulatory points.

In a now-deleted X publish, Armstrong expressed concern in regards to the DOJ’s actions, which he views as politically motivated. He additionally urged that the investigation might finally profit Polymarket.

The DOJ has reportedly initiated a probe into Polymarket for allegedly permitting trades from US-based shoppers. The Federal Bureau of Investigation (FBI) searched the Manhattan house of Shayne Coplan, CEO of Polymarket, taking his cellphone and digital gadgets.

Ryan Seam Adams, co-founder of the expertise podcast Bankless, expressed alarm over the FBI’s raid on Shayne Coplan. Adams stated the authorities didn’t give a purpose for the raid, calling the motion a type of political revenge that’s extraordinarily intimidating.

In response to Adam’s message, Armstrong revealed that he had deleted his prior publish on the authorities’ investigation of Polymarket as he didn’t have full particulars on the matter. Nevertheless, he added that primarily based on what he is aware of, the state of affairs appears troubling.

Notably, Polymarket was supposed to forestall US-based customers’ buying and selling actions as per a 2022 settlement with the Commodity Futures Buying and selling Fee (CFTC). The platform grew to become very fashionable in the course of the US election days, predicting correct political outcomes, as customers guess on their most popular candidates.

Learn additionally: Harris Skips Crypto Regulation as Trump Leads Polymarket with 52%

A French dealer’s whale transaction by the ultimate election days added extra scrutiny into the platform as opponents claimed that Polymarket allowed the manipulation of the underlying market. Polymarket responded to the authorities’ claims, defending the platform is a device for folks to find out about updates, together with elections.

Denouncing the authorities’ actions as politically motivated, Polymarket acknowledged that it might struggle for justice, including that Polymarket is a “totally clear” prediction market that helps everybody to grasp international occasions.