Yerevan (CoinChapter.com) - The U.S. Commodity Futures Trading Commission (CFTC) has issued a subpoena to Coinbase for customer information related to the crypto prediction platform Polymarket. Coinbase disclosed this in a customer notice dated January 8, 2025, which was publicly shared by EthHub co-founder Eric Conner.


The notice states that Coinbase may be required to submit user account data to the CFTC. However, the notice also clarifies that submission will be contingent on whether a motion to dismiss or other legal action is filed before January 15, 2025. The notice emphasizes that users do not need to take any action.
The subpoena highlights the CFTC’s focus on ensuring compliance within the cryptocurrency industry, particularly for platforms like Polymarket.

FBI probe adds pressure on Polymarket CEO
The subpoena follows a November 2024 FBI search of the home of Polymarket CEO Shane Copeland, which took place days after the November 5, 2024 presidential election that Donald Trump won.


Polymarket’s users reportedly placed large bets on the election outcome, with some pocketing profits of up to $50 million. Concerns have been raised about the potential for manipulation within Polymarket’s decentralized prediction markets.


Regulators including France’s National Gaming Authority have launched an investigation into Polymarket’s operations, focusing on its compliance with gambling regulations.

Polymarket’s regulatory challenges in the U.S.
Polymarket has been in the spotlight in the past. In 2022, it reached a $1.4 million settlement with the CFTC over allegations that it operated an unregistered derivatives trading platform. Following the settlement, Polymarket geo-blocked US residents. However, there have been reports that some users have used VPNs to bypass the restrictions.


The regulator is concerned about the platform’s operating history and customer base, prompting Coinbase to assist with the ongoing investigation.
Coinbase said in a customer notice that it would comply with the CFTC subpoena unless legal action prevented it. The notice also told users that no action was required.