US-based cryptocurrency exchange Coinbase reportedly received a subpoena from the Commodity Futures Trading Commission (CFTC) in connection with the crypto-based prediction market platform Polymarket.
Coinbase reportedly disclosed news of the subpoena in a customer notice on Jan. 8, which was then posted on X the same day by EthHub co-founder Eric Conner.
“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,” the posted notice read.
Coinbase “may be required” to send user account data to CFTC
According to the posting, no action was required from users, but Coinbase “may be required” to send certain information related to user accounts to the CFTC in response to the subpoena.
That requirement may be fulfilled unless Coinbase is “formally served by the close of business on Jan. 15, 2025, with a motion to quash or other legal filing that prevents Coinbase from sharing this information,” the notice added.
A customer notice on the CFTC subpoenaing customer data from Coinbase in the case against Polymarket. Source: Eric.eth
“The dems crypto pivot truly was something else,” EthHub’s Conner said in a subsequent X post.
What’s wrong with Polymarket?
The reported CFTC subpoena to Coinbase comes amid growing uncertainty around Polymarket after the US Federal Bureau of Investigation (FBI) raided the home of Polymarket CEO Shayne Coplan in mid-November.
The raids came a week after Republican Donald Trump won the US presidential election on Nov. 5, 2024.
Cryptocurrency investors made millions of dollars from betting on Trump’s victory on Polymarket, with some winning as much as $50 million from betting on his presidential victory.
Donald Trump presidency-related prediction markets on Polymarket as of Jan. 9, 2025. Source: Polymarket
Some industry executives have raised concerns about the potential manipulation of Polymarket’s decentralized prediction market.
Some global regulators, such as France’s Autorité nationale des jeux, reportedly launched an investigation into Polymarket operations and compliance with local gambling laws on Nov. 7, 2024.
Related: Polymarket users bet on Canadian PM resigning before official announcement
Though headquartered in New York, Polymarket has been inaccessible to US residents since 2022, following a $1.4 million settlement with the CFTC that accused the firm of running an unregistered derivatives trading platform.
As Polymarket reportedly geo-blocks US users from placing bets on the platform, media reports suggested that many US users evaded the ban using VPNs.
Cointelegraph approached Coinbase and Polymarket for a comment regarding the subpoena news but did not receive a response by the time of publication.
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