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Polymarket is no longer under the microscope. Both the U.S. Department of Justice and the Commodity Futures Trading Commission have officially ended their investigations into the crypto-based prediction market without filing charges, according to a source familiar with the matter.
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Earlier this month, Polymarket received formal notices from the DOJ and CFTC stating that the investigations had concluded. Both agencies declined to pursue further action. Bloomberg first reported the closure of the probes.
The investigations centered on whether Polymarket continued to allow U.S. users to place political bets after agreeing in 2022 to shut down domestic operations. That original settlement included a $1.4 million fine from the CFTC for offering unregistered binary options.
The criminal case, handled by the U.S. Attorney’s Office for the Southern District of New York, included a raid last November on the New York City apartment of Polymarket CEO Shayne Coplan. Agents seized his phone and other electronics. However, no charges were filed.
At the time, Coplan posted on social media that he believed the action was politically driven. “It’s discouraging that the current administration would seek a last-ditch effort to go after companies they deem to be associated with political opponents,” he wrote.
Despite regulatory heat, Polymarket saw a massive jump in activity heading into the 2024 presidential race. The platform processed over $100 million in bets, and its markets heavily favored Donald Trump over Kamala Harris. Those odds were referenced publicly by Trump, Elon Musk, and several major media outlets.
By March, Coplan had shifted from defense to diplomacy, thanking Trump for including him in a White House crypto event. “This admin’s commitment to collaboration with American innovators is revitalizing the American dream,” he said in a post.
Regulators have started to ease off enforcement efforts that were prominent under the Biden administration. Meanwhile, Congress is preparing to vote on multiple bills that aim to support digital asset innovation—an effort referred to by insiders as “crypto week.”
Platforms like KalshiEx and Polymarket have both faced legal scrutiny, but a recent court ruling allowed KalshiEx to move forward with election markets. The CFTC eventually dropped its appeal, signaling a more relaxed stance on such platforms.
Just a couple of weeks ago, Polymarket announced to be close to raising $200 million, which will put the company at a valuation of roughly $1 billion.