CEO Shayne Coplan reportedly instructed staff to prioritize platform growth despite a scheme involving stolen debit cards. Fraudulent deposits allegedly reached over 80% of the total volume, significantly exceeding the industry standard of approximately 1%.
The payment processor identified the issue in February 2026, noting that at least $10 million was targeted on the US platform. Reports indicate that leadership chose to continue operations rather than implement stricter verification measures, viewing potential regulatory fines as a standard business cost.
Following the incident, several executives left the company, and an internal investigation is currently underway. Polymarket previously faced regulatory action in 2022, when the CFTC imposed a penalty of $1.4 million for operating unregistered event markets.
The company re-entered the US market in late 2025 with a platform regulated by the CFTC. Currently, the firm is also under scrutiny regarding separate allegations involving insider trading and marketing practices.
