Coinbase Served CFTC Subpoena in Polymarket Investigation Over Controversial Wildfire Betting
Coinbase has received a subpoena from the U.S. Commodity Futures Trading Commission (CFTC) as part of an investigation into Polymarket, a cryptocurrency-based prediction exchange platform. The regulatory body is examining whether Polymarket has allowed U.S. customers to participate in its betting markets.
Firefighters battle California wildfire
This investigation follows Polymarket's previous $1.4 million settlement with the CFTC in early 2022 for operating without proper registration. The platform was required to cease U.S. operations as part of that agreement.
Recent controversies surrounding Polymarket include:
- Offering bets on the Luigi Mangione murder case
- Creating markets around ongoing Los Angeles wildfires
- Accumulating over $314,000 in bets on wildfire containment predictions
Polymarket defends its practices, stating it provides "transparent, probabilistic forecasts" rather than speculation, and has suspended fees on wildfire-related markets.
The platform faces additional challenges internationally, with Singapore's Gambling Regulatory Authority (GRA) recently banning its operations. The GRA classifies Polymarket as an illegal gambling site, threatening fines up to S$10,000 and six-month prison terms for users.
Coinbase has notified affected customers about the subpoena, indicating that account information may be shared with the CFTC, though no action is required from users at this time.
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