Coinbase, a prominent US-based cryptocurrency exchange, has informed its users about a subpoena issued by the Commodity Futures Trading Commission (CFTC) concerning the crypto-based prediction market platform Polymarket. The subpoena requests general customer information related to user accounts, as stated in a notice from Coinbase distributed on January 8. Although no immediate action is required from users, Coinbase might be obligated to provide this data to the CFTC unless legally prevented by January 15, 2025.
The situation arises amid increasing uncertainties regarding Polymarket, following a mid-November FBI raid on the home of the platform’s CEO, Shayne Coplan. This follows a period where cryptocurrency investors made significant profits from placing bets on Donald Trump’s victory in the US presidential election. Concerns about potential manipulation of Polymarket’s decentralized prediction market have prompted investigations by global regulators, including France’s gambling authority.
Polymarket has faced restrictions in the United States since a 2022 settlement with the CFTC, which accused the platform of operating an unregistered derivatives trading service. Despite geo-blocking US users, reports indicate many have bypassed the ban using VPNs. Neither Coinbase nor Polymarket have provided comment regarding the subpoena at the time of publication.
