In a recent development, Coinbase has been served with a subpoena by the U.S. Commodity Futures Trading Commission (CFTC). The regulator is requesting “general customer information” related to the ongoing investigation of Polymarket, a blockchain-based prediction platform that gained significant attention during past political events.
CFTC Subpoenas Coinbase Over Polymarket
Sources familiar with the matter have confirmed that Coinbase received a subpoena from the CFTC, seeking user information connected to Polymarket. This development follows the platform’s rise to fame during the U.S. election season, where it facilitated predictions on various outcomes. According to screenshots shared by Ethereum advocate Eric Conner, Coinbase alerted certain users about the potential disclosure of their data as part of the legal proceedings.
Coinbase’s message stated that the exchange might be required to provide information to the CFTC in the coming weeks. While Conner refrained from commenting on his own usage of Polymarket, sources confirmed that the subpoena is part of the regulator’s legitimate request for user data.
Polymarket’s History and the CFTC’s Crackdown
Polymarket, launched in 2020, allows users to bet on the outcomes of various events ranging from sports to politics. The platform gained widespread attention during the U.S. presidential election, where speculation on outcomes brought it into the spotlight. However, its operations ran afoul of regulatory requirements.
Advertisement Banner
In 2022, the CFTC penalized Polymarket for failing to register its services with the agency. The platform subsequently agreed to a $1.4 million settlement and ceased offering services to U.S. residents. Despite these actions, the investigation into its activities continues, as evidenced by the recent subpoena served to Coinbase.
Trump, Polymarket, and Ongoing Investigations
The scrutiny surrounding Polymarket deepened after Donald Trump’s election-related predictions gained traction on the platform. Following Trump’s victory, the FBI raided the New York apartment of Polymarket CEO Shayne Coplan. While a Polymarket representative described the raid as an act of “political retaliation,” subsequent reports indicated it was part of a broader investigation led by the Department of Justice.
As the Trump administration prepares to take control of the White House, regulatory priorities might shift. However, the subpoena sent to Coinbase indicates that the CFTC is actively pursuing its inquiry into Polymarket in the meantime.
Follow us on Twitter and LinkedIn and join our Telegram channel to get instant updates on breaking news!
Disclaimer
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
