Polymarket CEO urged staff to prioritize growth despite $10 million fraud attempt
Polymarket’s chief executive told employees to keep expanding and accept any regulator fine after thieves tried to steal at least $10 million from its U.S. platform.
A fraud scheme in February attached stolen debit cards to numerous Polymarket U.S. accounts, allowing criminals to wager and funnel proceeds into their own wallets, prompting the payment processor Checkout.com to flag over 80% of deposits as suspicious. Compliance personnel warned CEO Shayne Coplan, who allegedly told them to keep expanding the business and accept any fine if regulators intervened. The Commodity Futures Trading Commission has launched an inquiry, and staff have been instructed to preserve related records.
Following the incident, the chief compliance officer and the U.S. division’s CEO were replaced, while a law firm concluded the firm had complied with applicable rules. Polymarket says it has cut fraud to normal levels by limiting debit-card attachments and is seeking $1 billion in new financing, valuing the company at about $21 billion.
Why it matters
The case highlights how rapid growth in crypto-based markets can clash with anti-fraud safeguards and regulatory oversight.
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