Law enforcement keeps raiding the homes of high-profile crypto players

After the co-founder of a popular crypto exchange had his home raided by US law enforcement, the FBI also searched the home of Shayne Coplan, the CEO of Polymarket, a leading prediction markets platform that found itself entangled in conspiracy theories during the US presidential election.

The blockchain-powered Polymarket is being investigated by the US Justice Department for allegedly allowing US-based users to trade on the platform, Bloomberg reported, citing an undisclosed source. According to the report, the FBI seized Coplan's phone and other unspecified electronics.

Coplan has not directly confirmed the raid, initially posting only "new phone, who dis?" on the X platform – apparently referring to having to replace his phone after it was seized.

Later, the CEO stated, "It’s discouraging that the current administration would seek a last-ditch effort to go after companies they deem to be associated with political opponents." He also emphasized that Polymarket is "deeply committed to being non-partisan."

Responding to Coplan, popular crypto investor Travis Kling pointed out that the administration targeting Coplan is the same one the CEO supported and wanted to see win.

During the election campaign, Polymarket came under scrutiny for large bets suggesting a much higher probability of Donald Trump winning. Multiple media outlets speculated that it could be some kind of manipulation, as polls showed that Democratic candidate Kamala Harris was leading. A French trader, known just as Theo, won $47 million betting on Trump’s victory.

In a related case, Jesse Powell, co-founder of the major crypto exchange Kraken and a vocal Trump supporter, admitted that his home was raided by law enforcement just days after the election. However, no additional details were provided.

Reacting to the news about Coplan, Powell commented that the CEO's "counsel is probably advising him to stay quiet" and noted that "a search warrant would have cited some criminal statute."

He also mentioned that it’s unclear whether the FBI has other warrants to monitor Coplan’s online accounts or associates.