The Commodity Futures Trading Commission (CFTC) has reportedly issued a subpoena to Coinbase, a prominent American cryptocurrency exchange, as part of an ongoing investigation into Polymarket, a decentralized prediction market platform.
According to a post by Eric Conner, the co-founder of EthHub, on the Ethereum-focused social media platform X, Coinbase notified its customers that it had received a subpoena from the CFTC. The derivatives market regulator is seeking general customer information from Coinbase in connection with its probe of Polymarket, a crypto-based betting platform that allows users to trade shares in USDC and wager on the outcome of future events.
Polymarket gained popularity during the US presidential election, with users correctly predicting Donald Trump’s victory. However, in November, the Federal Bureau of Investigation raided the home of Polymarket’s CEO, Shayne Coplan, amidst allegations that the platform violated a settlement agreement with the CFTC by allowing trades from US-based users. Coplan has dismissed these allegations as politically motivated.
In response to the situation, Coplan stated, “The incumbents should do some self-reflecting and recognize that taking a more pro-business, pro-startup approach may be what would have changed their fate this election.”
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Disclaimer: The information presented in this article is for informational purposes only and should not be taken as financial advice. Always do your own research before making any investment decisions.