Catenaa, Wednesday, January 15, 2025 – Crypto-based betting platform Polymarket is under fire from Singaporean authorities and U.S. regulators over legal violations and ethical concerns. Singapore has blocked the platform under its strict Gambling Control Act, deeming it an unlicensed gambling site. Violators face fines of up to S$10,000 and six months in prison.
Polymarket’s legal troubles deepened when the Commodity Futures Trading Commission (CFTC) issued a subpoena to Coinbase, demanding customer data linked to the platform. The move follows a November FBI raid on Polymarket CEO Shayne Coplan’s home, raising speculation of coordinated regulatory action.
Public outrage has surged over Polymarket’s wildfire betting markets, including wagers on when the devastating Palisades wildfire in Los Angeles will be contained. Critics have accused the platform of profiting off human tragedy, with some warning it incentivizes harmful behaviors like arson.
Polymarket has defended its operations, comparing its model to insurance companies that profit from crises. However, the backlash has tarnished its reputation, with many viewing the wildfire-related contests as a moral breach.
The platform’s trading volumes surged to $2.62 billion in November, fueled by U.S. election predictions, but have since plummeted to $500 million in January. Despite its growth, Polymarket’s reliance on controversial markets and regulatory defiance raises questions about its future.
