Coinbase, a US-based cryptocurrency exchange, is reportedly cooperating with an ongoing investigation into the decentralized prediction market platform, Polymarket. The Commodity Futures Trading Commission (CFTC) has requested information from Coinbase regarding this matter.
Coinbase’s Notification
Eric Conner, a co-founder of the Ethereum 
$3,241-focused website EthHub, shared on social media platform X that Coinbase informed customers about the CFTC’s information request. The email indicates that the derivatives market regulator is seeking general customer information from Coinbase in relation to the Polymarket investigation.
“The CFTC is requesting customer information from Coinbase regarding Polymarket.” – Eric Conner
Polymarket gained popularity during the U.S. presidential elections, allowing users to accurately predict Donald Trump’s victory. The platform enables users to make predictions on future events by trading shares using USDC.
FBI Raid on Polymarket’s CEO
In November, the Federal Bureau of Investigation (FBI) raided Polymarket CEO Shayne Coplan’s home over allegations that the platform violated a settlement agreement with the CFTC regarding blocking transactions for U.S.-based users.
“Current authorities should reconsider their approach, which could profoundly impact their fate in these elections.” – Shayne Coplan
Shayne Coplan claimed the FBI’s actions were politically motivated and asserted that such sanctions negatively affect businesses and startups. The details on how the CFTC’s investigation into Polymarket will unfold and the specifics of the customer information Coinbase needs to provide remain unclear.
Moreover, this case could serve as a significant example of how cryptocurrency exchanges respond to regulatory requests and how these processes evolve.
