Coinbase Receives CFTC Subpoena
for Customer Data Related
to Polymarket
Coinbase Receives CFTC Subpoena for Customer Data Related to Polymarket
The exchange said it may be required to share information about its users with
the government if it’s sought lawfully.
By André Beganski
Jan 9, 2025 Jan 9, 2025
4 min read
Coinbase is the leading crypto exchange in the U.S• Соединённые Штаты Америки (США). Image: Decrypt/André
Beganski
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The Commodity Futures Trading Commission served Coinbase with a subpoena in
relation to the booming prediction market Polymarket, a person familiar with
the matter told Decrypt Thursday.
The regulator’s request sought “general customer information” in relation to
Polymarket, the blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн-based prediction platform that gained notoriety in
the run-up to the November elections. A screenshot of an email• Коммуникации » Интернет-коммуникации » Электронная почта sent by
Coinbase to certain users regarding the request was shared on X (formerly
Twitter• Объект организация » Организации по алфавиту » Организации на Tw » Twitter, Inc.) by Eric Conner, founder of the Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum information site ETHHub.
The message sent by Coinbase stated that the exchange “may be required to send
information” to the CFTC, depending on legal procedures that could occur
within the following week. Conner declined to comment to Decrypt on whether
he’s used Polymarket’s platform before.
A person familiar with the matter confirmed to Decrypt that the CFTC served
Coinbase with a subpoena in relation to Polymarket, and that the screenshot
shared by Conner pertained to a legitimate request for user information that
was made by the regulator.
Biden's CFTC is subpoenaing customer info from @coinbase in their case
against @Polymarket pic.twitter.com/YlCdUPwHs7
— eric.eth (@econoar) January 8, 2025
Launched in 2020, Polymarket enables users to wager on the outcomes of various
events, including topics ranging from sports to politics. Last year, a wave of
speculation surrounding the U.S• Соединённые Штаты Америки (США). presidential election thrust Polymarket into
the cryptosphere’s limelight , earning its fair share of attention from
outside the industry for predicting the reelection of Donald Trump.
The CFTC brought an enforcement against Polymarket in 2022, claiming the
blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн-based prediction platform failed to register its services with the
regulator. Following a $1.4 million settlement with the CFTC, Polymarket
officially became off-limits for U.S. citizens.
Not long after Trump’s victory, the FBI raided Polymarket CEO Shayne Coplan’s
apartment in New York• Соединённые Штаты Америки (США) » Административные единицы США » Административное деление США » Нью-Джерси » Нью-Йорк
• Соединённые Штаты Америки (США) » Населенные пункты США » Города США » Города штата Нью-Йорк » Нью-Йорк. A Polymarket spokesperson claimed the move was an act
of "political retribution.” Bloomberg• Объект бренды » Бренды на b » Bloomberg News later reported that the raid was
related to an investigation conducted by the Department of Justice.
Polymarket did not immediately respond to a request for comment from Decrypt .
With Trump’s administration set to take control of the White House in less
than two weeks, the scrutiny applied to crypto firms could change under his
leadership. Still, the subpoena sent to Coinbase suggests that the CFTC is
pressing forward with an investigation in the meantime.
The CFTC did not immediately respond to a request for comment from Decrypt .
Even though Polymarket’s political wagers attracted billions of dollars in
bets, the platform continues to show signs of growth despite lower trading
volumes. Polymarket’s monthly active users increased to 349,500 last month,
outpacing November’s record of 293,700, according to a Dune dashboard.
A spokesperson for Coinbase told Decrypt that requests for information from a
government are carefully reviewed by a team of trained experts. In some
instances, the firm will object to producing information if a request is
legally insufficient, or seek to narrow it down.
“However, in some cases we may be required by law to share necessary data
lawfully sought after by the government,” the spokesperson said.
In 2022, former NSA• Объект организация » Организации по алфавиту » Организации на Аг » Агентство национальной безопасности США contractor turned whistleblower Edward Snowden• Объект человек » Персоналии по алфавиту » Персоналии на Sn » Сноуден, Эдвард critiqued
Coinbase for what he described as “toxic and embarrassing” levels of
compliance. He cast shade broadly on exchanges that keep track of where users’
funds flow.
Though the U.S• Соединённые Штаты Америки (США). presidential election provided Polymarket’s users with plenty
of betting fodder, criminal and civil authorities began scrutinizing
Polymarket months before the platform predicted Trump’s electoral victory, per
Reuters .
Coplan told Decrypt last year that Polymarket was a more useful tool for
assessing political outcomes than conventional polls. “The incoming
administration looked heavily at Polymarket forecasts throughout the election
cycle, which is incredible news,” he said .
The CFTC has raised concerns about the potential of political event contracts
to undermine elections’ integrity. Last year, the regulator failed to prevent
Kalshi, another prediction platform, from listing contracts for November’s
election after a federal court’s ruling.
While authorities in the U.S• Соединённые Штаты Америки (США). have scrutinized Polymarket, the platform has
also faced inquiries overseas. In November, Polymarket voluntarily blocked
users based in France after the country’s gaming regulator began examining the
company’s operations and compliance with gambling regulations.
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