US Justice Department and CFTC close probes into Polymarket: Bloomberg

A U.S. Justice Department probe into the predictions market Polymarket has come to a close, according to a report from Bloomberg.

Polymarket received formal notice earlier this month from both the Justice Department and the Commodity Futures Trading Commission that their investigations had ended, Bloomberg reported on Tuesday, citing a person with direct knowledge of the matter.

In November 2024, Bloomberg reported that Polymarket CEO Shayne Coplan was facing a Department of Justice probe. The Federal Bureau of Investigation had also seized Coplan's phone and electronics, according to a report from the New York Post, citing an anonymous source.

Lawyers for the CFTC and the DOJ were looking into whether Polymarket was accepting "wagers from people in the US using virtual private networks or other means to bypass the company’s controls," according to Bloomberg.

In 2022, Polymarket settled with the CFTC for allegedly offering illicit binary options contracts. In return, it agreed to pay a $1.4 million fine, wind down its non-compliant markets, and take preventative steps to block U.S. users on an ongoing basis.

The DOJ and CFTC did not immediately respond to a request for comment from The Block.

Polymarket hit $1.16 billion monthly volume in June, but its active trader count saw a 9.4% month-over-month decline, with just over 242,000 traders. Last month, Polymarket was set to close a $200 million fundraise at a $1 billion valuation, according to a report from The Information. [Bloomberg]