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The Wall Street Journal reported that fraudsters linked stolen debit cards to Polymarket US accounts in February, attempting to move at least $10 million through wagers and withdrawals. The payment processor rejected more than 80% of the deposits it handled as fraudulent, compared with an industry norm of roughly 1%.
Why it matters
People familiar with the events told the Journal that CEO Shayne Coplan responded to employee concerns by urging the company to keep growing and pay a fine if regulators found out. The account places anti-money-laundering controls and regulatory exposure at the center of Polymarket's expansion.
Polymarket said it has procedures to detect and respond to suspicious activity and is committed to working with regulators and law enforcement.
Market impact
The allegations raise compliance questions for prediction-market platforms that handle deposits, wagers and withdrawals across jurisdictions. The scale of rejected deposits could draw scrutiny from regulators and payment partners, while the company's stated cooperation will be tested against any further findings.
Frequently asked questions
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How much money did fraudsters try to move through Polymarket?
Fraudsters linked stolen debit cards to Polymarket US accounts and attempted to move at least $10 million through wagers and withdrawals.
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What share of deposits did Polymarket's processor reject as fraudulent?
The payment processor rejected more than 80% of the deposits it handled as fraudulent, compared with an industry norm of roughly 1%.
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What response did Shayne Coplan reportedly give employees?
People familiar with the events told the Wall Street Journal that Coplan urged the company to keep growing and pay a fine if regulators found out.
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Why does the episode raise AML concerns for prediction markets?
The reported use of stolen cards for wagers and withdrawals, combined with the high rejection rate, raises questions about suspicious-activity detection and transaction controls.
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How did Polymarket respond to the allegations?
Polymarket said it has procedures to detect and respond to suspicious activity and is committed to working with regulators and law enforcement.
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