DOJ and CFTC close Polymarket probe amid regulatory shift originally appeared on TheStreet .

The U.S. Department of Justice and Commodity Futures Trading Commission (CFTC) have informed Polymarket that federal investigations into the cryptocurrency-based prediction market have officially concluded, Bloomberg reported , citing a person familiar with the matter.

The closure comes as the White House prepares new digital asset legislation. The reversal also comes in the wake of Donald Trump’s 2024 election win — widely seen by crypto proponents as a potential regulatory tailwind.

Polymarket, which lets users wager on real-world events using blockchain-based smart contracts, had previously reached a settlement with the CFTC in January 2022. At the time, the company was charged with offering illegal event-based binary options to U.S. residents and operating as an unregistered market maker. The firm agreed to pay a $1.4 million fine and restrict access to American users.

Still, suspicions lingered among regulators that Polymarket continued to serve U.S. users in violation of that agreement. Those concerns came to a head in November 2024, days after the presidential election, when FBI agents raided the Manhattan penthouse of Polymarket founder and CEO Shayne Coplan. Authorities seized multiple devices during the operation, reportedly looking for evidence of continued U.S. activity.

That included a dramatic raid by the FBI on the Soho penthouse of Polymarket’s CEO, Shayne Coplan, just days after the election.

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What happened to Polymarket?

Coplan addressed the situation in a July 15 post on X, confirming the closure of the investigation:

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“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.”