FBI agents raided Polymarket CEO Shayne Coplan's Manhattan apartment, seizing his phone and electronic devices. The 26-year-old founder's company recently made headlines for accurately predicting the US presidential election outcome.

A Polymarket spokesperson confirmed the Wednesday morning raid to Business Insider. Following the incident, Coplan posted on X: "new phone, who dis?"

While the company claims the raid was "political retribution" for their election predictions, investigators are likely examining whether US citizens illegally participated in election speculation through the platform. Polymarket, an unregulated decentralized exchange, claims to block US users but may be accessible through VPNs.

The platform processed approximately $3.2 billion in crypto transactions related to election speculation. Only one company, Kalshi, is legally authorized to offer event contracts in the US under CFTC regulation.

The investigation may also focus on potential election influence through market manipulation. Large bets can affect perceived odds and potentially impact voter turnout. Notably, a French trader known as the "Trump Whale" won $85 million betting on Trump's victory, though they deny any political motives.

The CFTC previously attempted to block election-related trading on Kalshi, citing concerns about market manipulation and the illegality of election betting in the US. A similar attempt to influence election odds occurred in 2012 with significant bets placed on Mitt Romney.

FBI officials have not provided additional details about the ongoing investigation.

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