Polymarket Says Kalshi May Have Played a Role in FBI Raid on Shayne Coplan

^{Polymarket CEO Shayne Coplan and Kalshi CEO Tarek Mansour}

Executives at prediction market platform Polymarket believe rival Kalshi may have provided U.S. authorities with information about its operations, potentially helping trigger a federal investigation, The New York Times reported.

According to the newspaper, Kalshi’s lawyers met with federal prosecutors in New York before the raid. They reportedly explained how Polymarket operated and raised concerns that U.S. residents may have been accessing the platform despite restrictions in place at the time.

FBI agents searched the apartment of Polymarket founder Shayne Coplan on November 13, 2024, seizing his phone and other electronic devices. Authorities were investigating whether the platform had allowed Americans to place bets in violation of those restrictions.

Polymarket executives later suspected that Kalshi’s actions may have drawn investigators’ attention to the company.

Polymarket also suggested that an individual linked to its rival may have been monitoring Coplan, noticed FBI agents outside his home and alerted reporters to the raid.

No direct evidence has been presented to support the claims.

Kalshi denied the allegations. A company spokesperson called them false and said Kalshi first learned of the raid through media reports.

The company acknowledged, however, that it regularly communicates with regulators and had previously reported potential violations by Polymarket.

Kalshi and Polymarket have been competing for leadership in the prediction market industry for several years. The two companies are battling for users and influence in the sector, and their rivalry has repeatedly led to public accusations.