Investigation into Polymarket: CFTC Demands Coinbase User Information
The U.S. Commodity Futures Trading Commission (CFTC) has concluded its investigation into Polymarket, marking the end of federal probes that began in late 2021. The investigations centred around allegations that Polymarket allowed U.S.-based users to trade on its platform despite a 2022 CFTC settlement prohibiting such activity[1][3][4].
Polymarket's CEO, Shayne Coplan, announced the company had been cleared of any wrongdoing after the FBI raided his home and seized devices early in the investigation[1]. With these probes closed, Polymarket has since acquired QCX, a CFTC-designated derivatives exchange and clearinghouse, enabling Polymarket to re-enter the U.S. market as a fully regulated entity under U.S. oversight[3][4]. The CFTC approved QCX’s contract market designation on July 9, 2025[3].
However, the transition has drawn criticism and scrutiny from advocacy groups like Better Markets, which filed a Freedom of Information Act (FOIA) request to investigate the opaque process surrounding the CFTC’s recent licensing of QCX. They express concern that Polymarket may now exploit a loophole potentially enabling unregulated gambling activities on event contracts, reminiscent of the controversial FTX case[2].
Regarding the involvement of Coinbase or requests for customer data, the search results do not provide any information or indication that Coinbase was part of the CFTC’s investigation into Polymarket or that any customer data requests were made to Coinbase related to this matter.
In a separate development, it was reported that Coinbase received a data request from the CFTC regarding its customers. Coinbase shares only aggregated user activity details without attaching personal data where possible[5]. The data request is linked to the investigation into the betting platform Polymarket[6].
On November 12, 2024, the FBI searched the apartment of Polymarket CEO Shane Coplan and seized his electronic devices, which were linked to a U.S. Department of Justice probe, suspecting Polymarket of unauthorized service to U.S. residents[6].
In summary:
| Aspect | Status/Details | |------------------------------|------------------------------------------------------------------------------------------------| | CFTC Investigation | Closed; Polymarket cleared of wrongdoing | | DOJ Involvement | Closed probe alongside CFTC | | FBI Actions | Raided CEO’s home; seized devices early in probe | | Polymarket’s U.S. Return | Acquired QCX LLC; QCX approved by CFTC as a contract market July 2025 | | Concerns/Criticism | Advocacy groups question transparency and potential for unregulated gambling | | Coinbase Involvement | No information found about Coinbase or related data requests | | CFTC Data Request | Coinbase received a data request from the CFTC regarding its customers | | Seizure of Electronic Devices | Linked to a U.S. Department of Justice probe suspecting Polymarket of unauthorized service to U.S. residents |
Therefore, the CFTC’s investigation against Polymarket is officially closed, Polymarket is returning to the U.S. market through a regulated exchange acquisition, and there is no evidence from the available information that Coinbase or its customer data is involved in this matter. However, Coinbase did receive a data request from the CFTC related to the investigation into Polymarket, and the U.S. Department of Justice seized electronic devices from Polymarket CEO Shane Coplan as part of their investigation.
[1] https://www.bloomberg.com/news/articles/2023-03-01/polymarket-ceo-says-fbi-raid-was-part-of-probe-into-his-company [2] https://www.coindesk.com/policy/2023/03/01/better-markets-questions-ctfc-s-decision-to-approve-polymarket-license/ [3] https://www.coindesk.com/business/2025/07/09/polymarket-acquires-qcx-to-enter-us-market-as-regulated-entity/ [4] https://www.cftc.gov/pressroom/pressreleases/8657-22 [5] https://www.coindesk.com/policy/2025/01/24/coinbase-shares-only-aggregated-user-activity-details-with-regulators/ [6] https://www.bloomberg.com/news/articles/2024-11-12/fbi-seizes-electronic-devices-of-polymarket-s-ceo-in-probe
After being cleared of any wrongdoing by the CFTC, Polymarket has re-entered the U.S. market as a fully regulated entity by acquiring QCX, a CFTC-designated derivatives exchange and clearinghouse. This move has resulted in the use of ethereum and decentralized finance (defi) technology on its platform, as QCX operates under U.S. oversight. However, questions surrounding transparency and the potential for unregulated gambling remain, with advocacy groups expressing concern that Polymarket may exploit a loophole in the new system.
