Polymarket has fired Chief Marketing Officer Matthew Modabber after an internal investigation into several incidents, including an alleged scheme involving fake trades, according to the New York Post.
The Post said Modabber, a close friend of CEO Shayne Coplan, was pushed out after a probe into a string of embarrassing episodes that had worried investors. One source told the paper the company is finalizing a separation agreement. Modabber had served as chief marketing officer since January 2024.
Probe covered fake-trade allegations
The New York Post reported that one of the matters reviewed internally involved an alleged arrangement built around fake trades.
It also said the U.S. Commodity Futures Trading Commission is investigating claims that Modabber’s team created a webpage featuring videos of users making money from fake trades. No wrongdoing has been proven at this stage.
The same allegation was reported by The Wall Street Journal in June. That report said Modabber’s team built a fake webpage to showcase videos of Polymarket users profiting from fake trades. Polymarket told the Journal at the time that it was "committed to maintaining accurate, fair, and transparent markets."
Board reportedly saw him as an obstacle to image overhaul
According to the Post, Polymarket’s board concluded in recent weeks that Modabber was getting in the way of the company’s effort to move beyond its scrappy startup image while it considers a possible initial public offering.
The paper said the decision was complicated by Modabber’s friendship with Coplan, which dates back to high school. One source said an "irate" Coplan threatened to fire members of the legal team that was pursuing Modabber’s termination, then later accepted that separating was the best outcome for the company.
The board includes Coplan, crypto investor Nick Tomaino, lawyer Alex Spiro and an unnamed partner at Founders Fund, the Post reported.
Platform profile and CoinDesk follow-up
Polymarket is a prediction market where users bet on the outcome of real-world events, including elections, sports, the weather and the Oscars. The platform runs on crypto and blockchain technology.
The company drew broad attention ahead of the 2024 U.S. presidential election, when its odds were widely cited. The Post said Coplan, 28, became the country’s youngest billionaire as a result.
CoinDesk said it has reached out to Polymarket for comment.