Coinbase, one of the largest cryptocurrency exchanges in the United States, has received a subpoena from the Commodity Futures Trading Commission (CFTC) requesting customer data related to its Polymarket prediction market, according to a source familiar with the matter.
The subpoena, which was unsealed today, specifically seeks “public customer information” linked to Polymarket, a blockchain-based prediction platform that has gained popularity leading up to the November election. Eric Conner, the founder of Ethereum information site ETHHub, shared a screenshot of an email sent by Coinbase to certain users regarding the CFTC request on X (previously known as Twitter).
The email informed users that Coinbase may need to provide information to the CFTC due to upcoming regulatory procedures. Conner did not comment on whether or not he personally uses Polymarket’s platform.
A source has confirmed that the CFTC subpoena is genuine and is connected to Polymarket, a platform that was launched in 2020 and allows users to make predictions on various events, including sports and politics. Polymarket gained attention for its predictions regarding Donald Trump’s reelection campaign.
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This is not the first time Polymarket has faced regulatory scrutiny. In 2022, the CFTC filed a lawsuit against the platform for not registering its services. As a result, the platform was fined $1.4 million and subsequently blocked US citizens from accessing its services.
Polymarket faced increased scrutiny following Trump’s victory, when the FBI conducted a raid on the New York apartment of CEO Shayne Coplan. At the time, Polymarket representatives claimed that the raid was an act of “political retribution.” Bloomberg News later reported that the Justice Department was conducting an investigation.
In response to the subpoena, Coinbase expressed its commitment to protecting user data while complying with legal requirements.
“Requests for information from the government are thoroughly reviewed by a team of trained experts,” stated a Coinbase spokesperson. “If a request is legally insufficient, the firm may object to producing the information or attempt to narrow the request. However, in some cases, we may be obligated by law to share necessary data that is lawfully requested by the government.”
*This is not investment advice.