Polymarket Cleared as Federal Investigation Officially Concludes

The U.S. Department of Justice and the Commodity Futures Trading Commission (CFTC) have officially concluded their investigation into Polymarket, a decentralized prediction platform, according to a Bloomberg report published on July 15.

In November 2024, during the Biden administration, FBI agents conducted a search of the Manhattan residence of Polymarket CEO Shayne Coplan. Agents seized electronic devices belonging to Coplan and his partner. The search, which lasted several hours, involved a thorough inspection of the apartment and its contents. The operation occurred shortly after Polymarket drew attention for accurately predicting the outcome of the U.S. presidential election.

This was not the platform's first encounter with federal regulators. In 2022, Polymarket agreed to pay a $1.4 million civil penalty to the CFTC for operating unregistered binary options markets. As part of the settlement, the company also agreed to restrict access to its platform for U.S. residents. Under U.S. law, prediction markets are classified as “event contracts” and fall under the oversight of the CFTC. Any platform seeking to offer such markets must register and obtain the appropriate regulatory approvals. Wagering on U.S. elections remains explicitly prohibited, even for registered entities.

Coplan recalled, “Eight months ago, on election night, we were on top of the world after Polymarket called the election. Eight days later, the FBI broke down my door at 6 a.m. and took all my computers and phones, looking for anything that could imply foul play.”

The incident became a significant moment in the evolving relationship between prediction markets and U.S. political processes. Coplan stated that Polymarket fully cooperated with the investigation and has been cleared of any wrongdoing. The case is now closed, marking the conclusion of the legal process.

Recent Polymarket Updates

In June 2025, Polymarket reportedly neared a major funding round, aiming to raise approximately $200 million at a valuation exceeding $1 billion. That same month, the decentralized prediction platform announced a strategic partnership with X and xAI, positioning itself as the official prediction market provider for both companies. The collaboration marks a significant step in blending decentralized forecasting with artificial intelligence.

Ask Polymarket, an AI-powered X account, was launched on July 12 directly within X. The bot responds to user prompts in posts, offering AI-generated answers that incorporate live prediction data from Polymarket.

The partnership, along with increased investor interest, reflects growing confidence in Polymarket’s position at the intersection of AI, Web3, and real-world event forecasting. Now that the federal investigation has concluded, the platform moves into its next phase, with a focus on growth, integration, and broader adoption.