CFTC Investigates Cryptocurrency Prediction Market Polymarket – Bits Media

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CFTC расследует деятельность криптовалютного рынка предсказаний Polymarket - Bits Media

Activities of the Polymarket betting shop, which is preparing for an upcoming funding round, has repeatedly attracted the attention of the Commodity Futures Trading Commission (CFTC).

Regulator
is investigating a New York cryptocurrency platform predictions regarding illegal offers to users of swaps and binary options. Besides, The Commission is considering the issue, does the platform need to obtain a regulatory license?.

The CFTC has repeatedly examined the company's activities since then., how Polymarket began negotiating funding with institutional investors. It is assumed, that during the financing round the company will be valued at 1 billion US dollars. IN 2020 the platform sold about 4 billion shares.

After information appeared in the media about the initiation of a CFTC investigation into the platform’s activities, a company spokesman said: “Polymarket is committed to complying with current legislation, regulations and provide regulatory authorities with answers to questions of interest". The regulator did not comment on its interest in the prediction platform. The increased attention of the regulator could be caused by the fact, that the platform uses stablecoins from Coinbase in contracts with users.

Polymarket platform invited James MacDonald to defend against CFTC prosecution, partner at the Sullivan law firm & Cromwell, which up 2020 year headed the enforcement division of the Commission.

The Polymarket betting site was founded by 23-year-old Shane Coplan.. The prediction platform offers betting for any real events. Starting from bets on that, will the fed raise the base rate and ending with the football team winning. The price on the site is determined using an automatic market maker.

The Commodity Futures Trading Commission recently charged the creator of Kikit&Mess Investments LLC in foreign currency and crypto asset investment fraud, and in appropriating more $3.9 million. Previously, the CFTC fined Tether and the Bitfinex exchange for $42.5 million for misleading users and illegally providing services to US citizens.