The Commodity Futures Trading Commission has served Coinbase with a subpoena in connection with the booming prediction market Polymarket, a person familiar with the matter said. Decryption Thursday.

The regulator's request sought "general customer information" in relation to PoleMarket, a blockchain-based forecasting platform that gained notoriety in the run-up to the November election. A Screenshot An email sent by Coinbase to specific users regarding demand on X (formerly Twitter) was shared by Eric Conner, founder of Ethereum information site ETHHub.

The letter sent by Coinbase stated that the exchange “may be required to submit information” to the Commodity Futures Trading Commission (CFTC), depending on legal proceedings that may occur over the following week. Conner declined to comment on this Decryption About whether he has used the Polymarket platform before.

A person familiar with the matter confirmed Decryption That the CFTC served Coinbase with a subpoena in connection with Polymarket, and that the screenshot shared by Conner relates to a legitimate request for user information made by the regulator.

Launched in 2020, Polymarket allows users to bet on the outcomes of various events, including topics ranging from sports to politics. Last year, a wave of speculation surrounding the US presidential election pushed Polymarket over the edge Cryptosphere lightsand received its fair share of attention from outside the industry for predicting Donald Trump's re-election.

The CFTC filed an executive order against Polymarket in 2022, claiming that the blockchain-based forecasting platform failed to register its services with the regulator. Follow a $1.4 million settlement With the Commodity Futures Trading Treaty (CFTC), Polymarket is officially off limits to US citizens.

Not long after Trump won, the F.B.I I raided Polymarket CEO Shane Coplan's apartment in New York. A Polymarket spokesperson claimed the move was "political revenge." Bloomberg News Later I mentioned The raid was related to an investigation conducted by the Ministry of Justice.

Polymarket did not immediately respond to a request for comment Decryption.

With the Trump administration poised to take control of the White House in less than two weeks, the scrutiny applied to cryptocurrency companies could change under his leadership. However, the subpoena sent to Coinbase indicates that the CFTC is moving forward with the investigation in the meantime.

The CFTC did not immediately respond to a request for comment Decryption.

Although Polymarket's political bets have attracted billions of dollars in bets, the platform is still showing signs of growth despite declining trading volumes. The number of monthly active users on Polymarket rose to 349,500 last month, surpassing November's record of 293,700, according to a report. Sand dunes Dashboard.

A Coinbase spokesperson said Decryption Requests for information from the government are carefully reviewed by a team of trained experts. In some cases, the Company objects to providing information if the request is legally insufficient, or seeks to narrow its scope.

“However, in some cases, we may be required by law to share necessary data that the government legally requests,” the spokesperson said.

In 2022, former NSA contractor turned whistleblower, Edward Snowden criticize Coinbase for what he called "toxic and embarrassing" levels of compliance. It has widely cast a shadow over exchanges that track where users' money flows.

Although the US presidential election provided Polymarket users with plenty of betting material, criminal and civil authorities began scrutinizing Polymarket months before the platform predicted Trump's electoral victory, according to Reuters.

Coplan said Decryption Last year, Polymarket was a more useful tool for evaluating political outcomes than traditional polls. “The incoming administration has looked closely at Polymarket's forecasts throughout the election cycle, which is incredible news.” He said.

The CFTC has raised concerns about the potential for political event contracts to undermine the integrity of elections. Last year, the regulator to fail To prevent Calci, another predictive platform, from listing contracts for the November election following the Federal Court ruling.

While authorities in the US have examined Polymarket, the platform has also faced inquiries abroad. In November, Polymarket voluntarily Forbidden Users residing in France after the country's gaming regulator He started Examine company operations and compliance with gambling regulations.