The U.S. Department of Justice is investigating the cryptocurrency prediction platform Polymarket for allegedly allowing U.S. users to trade

ChainCatcher news, sources revealed that the U.S. Department of Justice is investigating the cryptocurrency prediction platform Polymarket, accusing it of accepting trades from U.S. users. The Federal Bureau of Investigation (FBI) issued a search warrant for Polymarket CEO Shayne Coplan and confiscated his phone and electronic devices.

According to an agreement reached with the Commodity Futures Trading Commission (CFTC) in 2022, Polymarket will block U.S. traders from trading on the platform. Polymarket stated in a release that the company will "stand up for ourselves and our community," and accused the FBI's search of being politically motivated, "Polymarket is a fully transparent prediction market that helps ordinary people better understand the events that matter most to them, including elections."

The company, led by Coplan, reached an enforcement settlement with the CFTC two years ago, agreeing not only to block U.S. users but also to pay a $1.4 million fine. The company has recently stated that it has taken additional measures to verify and block users suspected of being U.S. citizens or residents.