Polymarket CEO Dismissed $10M Fraud, CFTC Opens Investigation

Polymarket CEO Shayne Coplan reportedly told employees to prioritize growth and absorb any fines after fraudsters attempted to steal at least $10 million from the prediction market's U.S. platform in February, the Wall Street Journal reported. Thieves attached stolen debit cards to thousands of U.S. accounts to place bets and funnel proceeds into controlled accounts. Payment processor Checkout.com flagged over 80% of incoming deposits as fraudulent, versus the roughly 1% industry norm. The CFTC has opened an investigation and instructed staff to preserve related records. Chief Compliance Officer Andrew Clifford resigned in April after detailing fraud issues; U.S. division CEO Justin Hertzberg was later fired, along with the heads of U.S. regulation and anti-money-laundering. Polymarket is raising $1 billion at a roughly $21 billion valuation, with Donald Trump Jr.'s 1789 Capital investing about $300 million.