United States-based publicly-traded cryptocurrency exchange Coinbase received a subpoena by the U.S. Commodity Futures Trading Commission (CFTC) concerning investigating the decentralized prediction market Polymarket.
Coinbase has sent emails to customers warning them of ongoing investigations, according to cited by industry news outlet Decrypt. The regulator’s request sought “general customer information” in connection with Polymarket, a screenshot of an email sent by Coinbase to some users was making the rounds online. The message read:
“We write to inform you that Coinbase has been served with a subpoena in the above-referenced matter seeking general customer information that includes information related to your account(s).
No action is required from you, but Coinbase may be required to send information related to your account(s) to the Commodity Futures Trading Commission.”
The details
A Coinbase spokesperson told industry news outlet The Block that the company is occasionally required to share data with law enforcement. The corporate representative explained that the company sometimes refuses to fully comply with such requests:
“In some cases, we may be required by law to share necessary data lawfully sought after by the government. […] Where necessary, we will seek to narrow requests that are overly broad or vague in order to provide a more appropriately tailored response, and in some cases, we object to producing any information at all (such as if the request is legally insufficient).”
The United States Commodities and Futures Commission is not the only regulator currently investigating Polymarket. In November, reports suggested that the gambling regulator in France is set to ban Polymarket.
Still, the platform is far from becoming inactive. After reaching notoriety by allowing betting on the result of the United Sates presidential elections, Polymarket continued to flourish.
In November, the platform also started teasing a future token launch. The platform purportedly showed an image reading “We predict future drops” to users claiming their winnings. The text continued:
“Users who reinvest their winnings into other markets may be eligible for boosted future rewards and drops.”
