Coinbase has received a subpoena from the U.S. Commodity Futures Trading Commission (CFTC) as part of an investigation into Polymarket, a cryptocurrency-based prediction exchange platform.

The CFTC is investigating whether Polymarket has allowed U.S. customers to participate in its platform, which offers betting contracts on various events. Coinbase must now disclose customer information related to Polymarket activities.

This isn't Polymarket's first encounter with regulators. In early 2022, the platform paid a $1.4 million penalty to the CFTC for operating without proper registration and agreed to stop serving U.S. customers.

Recent controversies surrounding Polymarket include:

• Offering bets on the Luigi Mangione murder case
• Creating markets around ongoing Los Angeles wildfire devastation
• Handling over $314,000 in bets on wildfire containment predictions

While Polymarket defends its practices as providing "transparent, probabilistic forecasts," the platform faces increasing scrutiny. The company has suspended fees on wildfire-related markets in response to criticism.

In a related development, Singapore's Gambling Regulatory Authority (GRA) has banned Polymarket, declaring it an illegal gambling site. Singaporean residents caught using the platform face fines up to S$10,000 and potential imprisonment for up to six months.

The CFTC's investigation continues to determine if Polymarket has violated regulations by allowing U.S. residents to participate in its prediction markets, particularly concerning the 2024 presidential election outcomes.

Related Articles

Previous Articles