Coinbase was asked by the Commodity Futures Trading Commission (CFTC) to provide customer data in relation to the investigation of Polymarket.

Coinbase was asked by the Commodity Futures Trading Commission (CFTC) to provide customer data in relation to the investigation of Polymarket.

The investigation into the betting platform Polymarket, which began in late 2021, has come to a close. The U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) have decided not to bring charges against Polymarket, marking the end of years of scrutiny that included FBI raids and regulatory inquiries.

In a significant turn of events, Coinbase, a popular cryptocurrency exchange, was subpoenaed by the CFTC in early July 2025, seeking customer data related to Polymarket. This move was likely part of the probe into whether Polymarket had illegally served U.S. residents. However, with the investigation now closed, Polymarket has re-entered the U.S. market by acquiring QCX, a CFTC-approved derivatives exchange, enabling compliant operation.

The subpoena sent to Coinbase was not the first regulatory action against the company. In November 2024, the FBI conducted a raid on the apartment of Shane Coplan, the CEO of Polymarket, seizing his devices. This incident, too, was linked to the ongoing investigation.

Coinbase, in its transparency report published in November 2024, stated that it analyzes government requests thoroughly, trying to narrow overly broad or vague requests. In some cases, the company may refuse to provide data if it deems it unnecessary. When possible, Coinbase shares only aggregated user activity information without disclosing personal data.

Interestingly, the November 2024 transparency report does not mention the raid on Shane Coplan's apartment or the ongoing investigation by the DOJ suspecting Polymarket of illegally serving U.S. residents. It also does not mention the request for customer data from Coinbase related to the ongoing investigation of Polymarket.

The request for information from Coinbase was dated January 8, 2025. The letter sent by Coinbase to relevant accounts clarified that the agency had sent an official request seeking "general information" about certain accounts.

In January 2022, Polymarket settled a dispute by paying a $1.4 million fine, but details about the nature of the dispute were not disclosed. The November 2024 transparency report does not provide any further information about this settlement.

The closure of the Polymarket investigation marks a significant step forward for the cryptocurrency industry, demonstrating the ability of companies to navigate regulatory challenges and operate within the law. Despite the past regulatory concerns, the current status of the Polymarket case is that it has been resolved without any ongoing enforcement action against the company itself.

1. What about the data Coinbase provided in response to the January 8, 2025, request from the CFTC regarding Polymarket's finance and business operations in the technology sector?
2. Even after resuming operation in the U.S. market by acquiring QCX, a CFTC-approved derivatives exchange, is Polymarket still under scrutiny for its past involvement in the illegally serving U.S. residents for finance and business activities in the realm of technology, as suggested by the absence of mention in the November 2024 transparency report?

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