Polymarket Faces Investigations After $10 Million Fraud Attack

Prediction market platform Polymarket is under investigation by the Commodity Futures Trading Commission and the New York City Council following a major fraud attack in February 2026. Attackers used stolen debit cards to attempt to steal at least $10 million from the platform.

Internal reports allege that CEO Shayne Coplan dismissed employee concerns regarding the fraud, instructing compliance staff to prioritize growth and pay any resulting regulatory fines. To expedite user withdrawals during the attack, the company removed a security rule requiring funds to be returned to the original payment source, a decision employees warned could facilitate money laundering.

Despite facing lawsuits from traders alleging deceptive business practices and concerns from its largest investor, Intercontinental Exchange, the company is pursuing aggressive expansion. Coplan is currently raising $1 billion in a funding round that values the company at approximately $21 billion, with significant investment from 1789 Capital. To professionalize operations ahead of a potential IPO, Polymarket has since hired a chief financial officer and new risk-management staff.