DOJ and CFTC drop investigations into Polymarket

The US Justice Department and Commodity Futures Trading Commission have ended their investigations into crypto-betting platform Polymarket, Bloomberg reported Tuesday, citing a source with direct knowledge of the matter.

The probes examined whether the New York-based platform continued accepting wagers from US traders using virtual private networks or other means to bypass company controls, following a January 2022 settlement with the CFTC.

The investigations intensified after the November elections when FBI agents conducted a pre-dawn raid at the Soho penthouse of Polymarket CEO Shayne Coplan. The 27-year-old executive later criticized the action on social media, calling it a "last-ditch effort" to target companies deemed associated with President Joe Biden's political opponents.

The decision to end the investigation comes as Congress prepares to vote on the first major legislation to regulate digital assets, which is expected to reach the president's desk for signature this week.

The resolution may allow Polymarket to officially re-enter the US market, potentially through CFTC registration as a futures exchange or acquisition of an entity with a CFTC license.

Polymarket has secured new investment led by Peter Thiel's Founders Fund and recently partnered with Elon Musk's X and xAI to offer event forecasts on the social media platform.

This is a developing story.