Polymarket Walks Free After FBI Raid And Political Betting Controversy; Federal Probes Officially Dropped

Federal Regulators Close Polymarket Investigations, No Charges Filed

After months of intense scrutiny, the U.S. Department of Justice and the Commodity Futures Trading Commission (CFTC) have reportedly concluded their separate investigations into Polymarket, the decentralized prediction market platform, without filing any charges.

This decision marks an anticlimactic end to probes that garnered significant attention, particularly following a surge in activity on the platform during the 2024 U.S. elections.

Why Were Regulators Watching Polymarket So Closely?

The federal inquiries into Polymarket were primarily focused on whether the platform had permitted U.S. residents to engage in trading activities, a potential violation of federal regulations.

Interest in Polymarket, where users can bet on the outcomes of various events, reportedly soared during the 2024 U.S. elections, with an NBC analysis finding that the platform handled over $3.6 billion in bets related to the presidential election alone.

This spike in activity is believed to have drawn closer attention from regulatory bodies.

These investigations followed a prior enforcement action in 2022, where the CFTC levied a $1.4 million fine against Polymarket for operating unregistered markets.

The stakes were further raised last November when FBI agents raided the home of Polymarket CEO Shayne Coplan, seizing electronic equipment and fueling speculation about the company’s legal standing.

However, sources familiar with the matter, cited by both Cointelegraph and Bloomberg, indicate that the inquiries have now been quietly closed, with Polymarket receiving formal declination notices from both the U.S. Justice Department and the CFTC.

CEO Shayne Coplan's Stance and Political Overtones

Neither Polymarket nor Shayne Coplan has publicly commented on the closure of the investigations. However, Coplan has previously expressed strong opinions regarding the regulatory scrutiny.

Following the FBI raid on his apartment in New York City last November, Coplan took to social media, stating,

“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 further asserted,

“Polymarket has provided value to 10′s of millions of people this election cycle, while causing harm to nobody.”

In a notable development in March 2025, Coplan publicly thanked President Donald Trump for an invitation to a crypto summit at the White House, praising the administration’s “commitment to collaboration with American innovators” and stating,

“The future is bright.”

This sentiment hints at the shifting landscape of digital asset enforcement under the current administration, which has seen some enforcement actions and investigations into cryptocurrency companies initiated under the previous administration dropped or dismissed.

A Broader Shift in Regulatory Approaches?

The decision to close the Polymarket investigations without further charges aligns with a broader trend seen under the Trump administration concerning actions initiated during the Biden administration against cryptocurrency companies and online betting markets.

A notable example is the CFTC's move in May 2025 to drop its appeal of a federal judge’s ruling that allowed the prediction market KalshiEx to accept bets on U.S. elections.

As the House of Representatives prepares to vote on several crypto bills before the August recess, including the CLARITY Act and the GENIUS Act, the regulatory environment for digital assets continues to evolve.

These legislative efforts, combined with the recent decisions by federal agencies, suggest a potential recalibration of how the U.S. government approaches the burgeoning cryptocurrency and online betting sectors.

Regulatory Chill Or Political Convenience?

Polymarket’s escape from further penalties raises serious questions about consistency in crypto enforcement.

With regulators stepping back from high-profile cases and political ties becoming more apparent, is the U.S. legal framework for digital markets drifting towards selective accountability?

As crypto firms expand influence and access across global borders, regulatory clarity—free from political sway—remains one of the most critical issues yet to be resolved.