CFTC Subpoenas Coinbase Over Polymarket Case:
American goods futures The United States Trade Commission (CFTC) has reportedly issued a subpoena to Coinbase, the largest cryptocurrency exchange in the United States.
According to the report, the commodities regulator is seeking information related to cryptocurrency-based prediction market platform Polymarket.
CFTC subpoenas Coinbase: Impact on users
EthHub co-founder Eric Conner shared the news in a post on X (Twitter), revealing Coinbase’s legal troubles. Coinbase has notified its users of the subpoena, according to a customer notification. The exchange said that while they are not required to take immediate action, in response, the exchange “may be required” to share certain user account data with the CFTC.
“We are writing to inform you that Coinbase has received a subpoena in the matter described above requesting general customer information, including information related to your account,” Coinbase emailed to customers read.
Coinbase’s customer notice also reportedly clarified that it will be obligated to provide the requested information unless a “motion to dismiss or other legal filing” is received before January 15, 2025. This latest legal move follows heightened scrutiny of Polymarket. Decentralized prediction market platform It has faced regulatory action before.
Notably, Polymarket has not been available to US residents since 2022. Previously, the U.S. Commodity Futures Trading Commission reached a $1.4 million settlement with the CFTC for operating an unregistered derivatives trading platform. Despite this restriction, reports indicate that some U.S. users Circumvent geo-blocking Use a virtual private network (VPN).
The CFTC’s subpoena against Coinbase has raised concerns about the potential impact on its users. The exchange said users do not need to take immediate action, but the possibility of sharing user data with the CFTC could unsettle its customer base. The CFTC has not yet clarified what specific information it is seeking or how it plans to use the data in a broader investigation.
As of the time of publication, Polymarket had not commented publicly on the subpoena. Likewise, Coinbase did not immediately respond to BeInCrypto’s request for comment. Nonetheless, the situation reflects the cryptocurrency platforms and regulatory oversight.
Meanwhile, the subpoena comes as legal challenges against Polymarket continue to escalate. In mid-November, the FBI Raid on the home of Polymarket CEO Shayne Coplan. The agency seized Copeland’s phone and other electronic devices. The raid took place just days after Donald Trump won the US presidential election in November 2024.
In hindsight, the election was a major driver for Polymarket. According to BeInCrypto, the platform’s Betting volume exceeds US$3 billion During the election cycle. Some Users earn up to $50 million in net profit Correctly predicted Trump’s victory.
The boom in activity at Polymarket also raises concerns about potential manipulate In decentralized prediction markets. Following the U.S. election, global regulators, including France’s National Gambling Authority has reportedly launched an investigation Participate in Polymarket operations and comply with local gambling laws.
These concerns have added to the regulatory scrutiny Polymarket has faced since its inception, even as the platform’s international appeal continues to grow.
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