A February report from a company handling debit card transactions for Polymarket’s U.S. betting platform said fraudsters were flooding the app, according to ChainCatcher. The report said users linked stolen debit cards to U.S. Polymarket accounts, placed bets, and then tried to withdraw funds to clean cards or accounts under their control. The thieves were said to have attempted to steal at least $10 million.
The processor reportedly flagged more than 80% of deposits as fraudulent at one point, far above an industry norm of about 1%. The report also said Polymarket employees raised concerns with CEO Shayne Coplan. According to people described as familiar with the matter, the compliance team was shocked by Coplan’s response: keep growing, and pay a fine if regulators discover it.
In February, a company that processed debit card transactions for Polymarket’s U.S. betting platform reported that fraudsters were pouring into the app, according to ChainCatcher.
The report said users linked stolen debit cards to U.S. Polymarket accounts, tried to place bets with those funds, and then attempted to withdraw the money to clean cards or accounts they controlled. The thieves were said to have tried to steal at least $10 million.
At one point, the processor reportedly rejected more than 80% of deposits as fraudulent, far above an industry standard of about 1%.
The report also said Polymarket employees raised concerns with CEO Shayne Coplan. People described as familiar with the matter said the compliance team was stunned by Coplan’s response: keep growing, and if regulators find out, pay the fine.
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