CFTC Issues Subpoena to Coinbase Regarding Its Association with Prediction Platform Polymarket

The Commodity Futures Trading Commission has subpoenaed cryptocurrency exchange Coinbase (NASDAQ:COIN) for customer information in its case against prediction platform Polymarket, multiple sources reported on Thursday.

What Happened: The CFTC is seeking “general customer information” related to Polymarket, a Polygon (CRYPTO: MATIC)-based forecasting platform that is not legally permitted to offer its services in the U.S., Decrypt reported, citing a source familiar with the matter.

Moreover, Eric Conner, an angel investor and well-known Ethereum (CRYPTO: ETH) advocate, shared an email from Coinbase on X alerting users about the CFTC’s request. The email suggested that Coinbase “may be required to send information” to the CFTC, depending on legal proceedings that could occur within the next week.

Biden's CFTC is subpoenaing customer info from @coinbase in their case against @Polymarket pic.twitter.com/YlCdUPwHs7

See Also: US Government Silk Road Bitcoin Holdings Drop To 0 Amid Report DOJ Approved To Sell $6.5 Billion Worth Of Crypto

Coinbase and the CFTC didn’t immediately respond to Benzinga’s request for confirmation. The story will be updated when they respond.

A subpoena is a written order issued by a court, attorney, or administrative agency, asking an entity to appear in court or comply with other legal processes. A motion to quash may be made to request that a subpoena be rejected.

Why It Matters: Polymarket has been under scrutiny for some time now. The platform attracted eyeballs during the election season last year when several accounts operated by a single person placed huge wagers on Donald Trump, sparking manipulation fears.

CEO Shayne Coplan defended the platform amid rising scrutiny, emphasizing its non-partisan nature and its role in providing unbiased, market-driven predictions. Notably, Coplan’s residence was raided by the Federal Bureau of Investigation after the election.

The raid was part of a Justice Department investigation into allegations that Polymarket allowed U.S.-based users to place bets in violation of regulatory agreements.

Price Action: Shares of Coinbase fell 0.43% in Robinhood’s overnight trading to $258.88.

Image Via Flickr/ Ivan Radic

This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.