UMA

Polymarket
2026-07-07 08:52:34

Polymarket Sued in New York Over Strategy Bitcoin Sale Market Dispute

Two plaintiffs have filed a lawsuit against Polymarket in the New York State Supreme Court, alleging breach of contract and deceptive conduct tied to a prediction market on whether Strategy would sell any of its Bitcoin holdings by May 31. According to the complaint filed on July 3, the plaintiffs held “Yes” positions in the binary market. They argue that Strategy’s Form 8-K filed with the U.S. Securities and Exchange Commission shows the company did sell 32 BTC between May 26 and May 31. Despite that, Polymarket ultimately resolved the market as “No.” The complaint further claims that the platform added a clarification before settlement, effectively changing the resolution standard from whether a sale occurred by May 31 to whether the sale had been publicly confirmed by that date. Under that revised interpretation, the market was settled as “No” on June 3 following a UMA vote, the mechanism Polymarket uses to resolve disputed markets.

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Polymarket Sued in New York Over Strategy Bitcoin Sale Market Dispute