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Polymarket
2026-09-21 13:01:04

Polymarket’s growth push drew fraud alarms, legal scrutiny and internal turmoil, WSJ report says

A Wall Street Journal report says Polymarket’s rapid expansion has been accompanied by compliance gaps, fraud attempts, software failures and mounting legal pressure. The report, based on interviews with current and former employees and investors, says a February attack on Polymarket US involved stolen debit cards and an attempted theft of at least $10 million, with a payment partner classifying more than 80% of deposit transactions as fraudulent at the peak of the incident. Former regulators told the Journal the scale of the attempted fraud and the company’s response were unusual for commodities and gambling businesses. The report also describes a broader pattern inside the company under CEO Shayne Coplan, including pressure to keep growing, executive departures, internal investigations, product rollouts that allegedly outpaced testing, and disputes over anti-money-laundering controls. At the same time, Polymarket has continued to pursue fundraising, high-profile partnerships and a larger US presence. The company said it is committed to accurate, fair and transparent markets, works with regulators and law enforcement, and has processes to detect, review and address suspicious activity. The Journal report also says Polymarket has been dealing with federal and state lawsuits, questions over whether prediction markets amount to unlicensed gambling, and a second fraud incident in July that affected nearly 500 users.

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Polymarket’s growth push drew fraud alarms, legal scrutiny and internal turmoil, WSJ report says