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Coinbase has been subpoenaed by the Commodity Futures Trading Commission (CFTC) in its investigation into blockchain-based prediction Polymarket.
According to a screenshot shared by Eric Conner, founder of ETHHub, Coinbase informed affected users that they "may be required to send information" to the CFTC, contingent on legal proceedings expected within the week.
Biden's CFTC is subpoenaing customer info from @coinbase in their case against @Polymarket pic.twitter.com/YlCdUPwHs7
— eric.eth (@econoar) January 8, 2025
Decrypt reports that the CFTC served Coinbase with a subpoena in relation to Polymarket, and that Conner's screenshot involved a legitimate request for user information from the regulator.
In 2022, Polymarket settled with the U.S. Commodity Futures Trading Commission (CFTC) after being accused of operating an unregistered derivatives-trading platform. The settlement included a $1.4 million fine and a cease-and-desist order, prompting the platform to block U.S. customers.
Shortly after Donald Trump's Presidential victory, the FBI raided Polymarket CEO Shayne Coplan’s apartment in New York in relation to an investigation conducted by the Department of Justice.
The CFTC’s recent subpoena suggests its continued investigation into Polymarket's activities, potentially focusing on its compliance and user data practices.
"When we receive requests for information from a government, each request is carefully reviewed by a team of trained experts using established procedures to determine its legal sufficiency," a Coinbase spokesperson said in an emailed statement.
"Where necessary, we will seek to narrow requests that are overly broad or vague in order to provide a more appropriately tailored response, and in some cases we object to producing any information at all."
Although based in New York, Polymarket has prohibited U.S. residents from participating since 2022 following a $1.4 million settlement with the CFTC for running an unregistered derivatives trading platform.
Just this week, Polymarket was found to have been blocked in Singapore as part of an intensified crackdown on unlicensed gambling platforms. The Singapore Police Force, the agency in charge of blocking illegal websites in the city-state, declined to comment on the matter when contacted by Blockhead.
When users attempt to access the site from Singapore, they are greeted with a stark warning citing Section 20 of the Gambling Control Act 2022, which imposes steep penalties for gambling with unlicensed operators.
BlockheadCrypto degens have also been busy betting on the Palisades wildfire on Polymarket. Featuring as a top trending category on Polymarket's homepage, "Wildfire" now features 19 betting pools.
"How many acres will Palisades wildfire burn by Friday?" is the most popular pool, garnering over $166,000 in bets. 77% have placed their money on 20-25K acres.
Blockhead
Other bets include the date that the fires will be contained, whether the fires will reach Hollywood, and if Gavin Newsom will still be Governor afterwards. Some are even betting on whether arsonists will be arrested in connection with the fires, with 79% betting on yes.
