YEREVAN (CoinChapter.com) — The Commodity Futures Trading Commission (CFTC) has issued a subpoena to Coinbase, requesting customer information tied to the crypto prediction platform Polymarket. Coinbase disclosed this in a customer notice on Jan. 8, 2025, shared publicly by EthHub co-founder Eric Conner on X.
The notice stated that Coinbase might be required to submit user account data to the CFTC. However, it also clarified that the submission would depend on whether a motion to quash or other legal action is filed by Jan. 15, 2025. The notice emphasized that customers do not need to take any action.
The subpoena highlights the CFTC’s focus on ensuring compliance within the cryptocurrency sector, particularly regarding platforms like Polymarket.
FBI Investigation into Polymarket CEO Adds Pressure
The subpoena follows a November 2024 raid by the FBI on the home of Polymarket CEO Shayne Coplan. This raid occurred days after the Nov. 5, 2024, presidential election, where Donald Trump emerged victorious.
Polymarket users reportedly made substantial profits betting on the election outcome, with some earning up to $50 million. Concerns have been raised about the potential for manipulation within Polymarket’s decentralized prediction markets.
Regulatory authorities, including France’s Autorité nationale des jeux, have initiated investigations into Polymarket’s operations, focusing on its adherence to gambling laws.
Polymarket’s Regulatory Challenges in the US
Polymarket has faced scrutiny in the past. In 2022, it settled with the CFTC for $1.4 million over allegations of running an unregistered derivatives platform. Following this settlement, Polymarket geo-blocked access for US residents. However, reports suggest some users circumvented the restrictions using VPNs.
Regulators have focused on the platform’s operational history and customer base, prompting Coinbase to assist in the ongoing inquiry.
Coinbase stated in the customer notice that it will comply with the CFTC subpoena unless legal action prevents it. The notice also informed users that they do not need to take any action.