The US Department of Justice (DOJ) and Commodity Futures Trading Commission (CFTC) have put an end to their investigation into prediction markets platform Polymarket.
As first reported by Bloomberg, both bodies formally informed Polymarket that it was cleared of any wrongdoing.
Both the DOJ and CFTC were looking into allegations relating to whether the platform was accepting bets from US-based customers.
As it isn’t officially registered with the CFTC, Polymarket is not permitted to take money from US residents.
As part of a settlement struck with the CFTC in January 2022, Polymarket agreed to remove US customers from its exchange.
At the time, the company also paid a $1.4m penalty to the CFTC for failing to register with the derivatives regulator.
While Polymarket is not allowed to accept users from the US, the implementation of a VPN allows customers to circumvent those restrictions, it is believed.
In November 2024, FBI agents raided the home of Polymarket CEO Shayne Coplan, seizing his phone and other electronic devices in the week following the US presidential election.
The platform reportedly took $3.6bn worth of trades during the election which saw Donald Trump named US president for a second term.
At the time of the raid, it was claimed the then-Biden administration launched its investigation after Polymarket predicted Trump would beat former vice-president Kamala Harris, while pollsters were unable to separate the pair.
Under the Trump administration, predictions markets have found favour, including Trump’s son, Don Jr, who is a strategic adviser to Kalshi.
Kalshi, Robinhood and Crypto.com have all launched sports event contracts, and while the legality of such offerings remain undetermined, former Kalshi board member Brian Quintenz is due to become the CFTC’s chair.
Taking to X to remark on the decision of the DOJ and CFTC to end their investigation, Coplan asserted that “justice prevailed”.
8 months ago, on election night, we were on top of the world after Polymarket called the election.
8 days later, the FBI broke down my door at 6am and took all my computers and phones, looking for anything that could imply foul play.
While traumatic, it etched the story of… pic.twitter.com/EOfJQTCzMY
— Shayne Coplan
(@shayne_coplan) July 15, 2025
He wrote: “Eight months ago, on election night, we were on top of the world after Polymarket called the election.
“Eight days later, the FBI broke down my door at 6am and took all my computers and phones, looking for anything that could imply foul play.
“While traumatic, it etched the story of Polymarket’s accuracy, and the ensuing resistance, into the history of American politics. And today, I’m happy to announce that this chapter of the story is over.
“After cooperating and engaging, we’ve been cleared of any wrongdoing. Justice prevailed. God bless America.”
Since last year’s election, Polymarket has continued its rise to prominence in the predictions market space.
The exchange executed more than $30m worth of trades on the outcome of who would become the next Pope.
Last month, Polymarket was also named as the official prediction markets platform for X, following a public falling out between the social media platform’s owner Elon Musk and President Trump.
Kalshi had announced a collaboration with Musk’s xAI, only to withdraw from the deal hours later.
As reported by business publication The Information last month, Polymarket is also in the process of completing a funding round worth $200m.
The round was reportedly led by the Founders Fund, led by billionaire and existing Polymarket investor Peter Thiel.
The post US government ends its investigation into Polymarket first appeared on EGR Intel.
Prediction market cleared of any wrongdoing by the Department of Justice and CFTC, with CEO Shayne Coplan claiming “justice prevailed”
The post US government ends its investigation into Polymarket first appeared on EGR Intel.