Coinbase, which is one of the largest cryptocurrency exchanges in the United States, has received a subpoena from the Commodity Futures Trading Commission (CFTC) requesting customer data related to its Polymarket prediction market, according to a source familiar with the matter.
The subpoena, which was unsealed today, specifically seeks “public customer information” associated with Polymarket. Polymarket is a blockchain-based prediction platform that has gained popularity in anticipation of the November election. Eric Conner, the founder of Ethereum information site ETHHub, shared a screenshot of an email sent by Coinbase to certain users regarding the CFTC request on X (formerly Twitter).
In the email, Coinbase informed users that it may be required to provide information to the CFTC due to upcoming regulatory proceedings. Conner declined to comment on whether he personally uses Polymarket’s platform.
A source has confirmed that the CFTC subpoena is indeed real and is related to Polymarket. Polymarket, which was launched in 2020, allows users to make predictions on various events, ranging from sports to politics. The platform gained attention for its accurate predictions regarding Donald Trump’s reelection campaign.
In related news, an experienced analyst has shared his opinions on the future prices of XRP and Ethereum. He targets $10 for XRP and $7,000 for Ethereum.
This is not the first time that Polymarket has faced regulatory scrutiny. In 2022, the CFTC filed a lawsuit against the platform for failing to register its services. The case concluded with a $1.4 million fine, and as a result, the platform blocked access to its services for US citizens.
Polymarket faced increased scrutiny after Trump’s victory, when the FBI raided the New York apartment of CEO Shayne Coplan. At the time, Polymarket’s representatives claimed that the raid was an act of “political retribution.” Later, Bloomberg News reported that the Justice Department was conducting an investigation.
In response to the subpoena, Coinbase emphasized its commitment to protecting user data while complying with legal requirements. A spokesperson for Coinbase stated, “Requests for information from the government are carefully reviewed by a team of trained experts. If a request is legally insufficient, the firm may object to producing information or attempt to narrow the request. However, in some cases, we may be obligated by law to share necessary data that is lawfully requested by the government.”
Please note that this translation is not intended as investment advice.
