CFTC seeks Coinbase customer data in Polymarket probe

Coinbase warned users that it had received a request from the CFTC for customer data, Ethereum commentator Eric Conner reported.

Biden’s CFTC is subpoenaing customer info from @coinbase in their case against @Polymarket pic.twitter.com/YlCdUPwHs7

— eric.eth (@econoar) January 8, 2025

According to the exchange, the Commission issued a formal demand to disclose “general information” on certain accounts. Judging by the subject line of an email sent to customers, the request relates to an investigation into the betting platform Polymarket that began in late 2021.

The platform was accused of illegally offering swaps and binary options to American customers. In January 2022, Polymarket settled the case, paying a $1.4m fine.

In 2024 the betting platform took an interest from the FBI. On November 12 law enforcement searched the apartment of Polymarket CEO Shayne Coplan and seized his electronics. Media said the authorities’ actions were explained by a US Department of Justice investigation that suspected the company of unlawfully serving US residents.

In its November 2024 transparency report, Coinbase said it carefully reviews government requests and provides only strictly necessary data.

“We will seek to narrow overly broad or vague requests. […] In some cases we decline to provide information at all,” the company said.

Where possible, Coinbase shares only aggregated information about user activity without linking it to personal data.

In 2024 the CFTC recovered and returned a record $17.1 billion.