Polymarket CEO Shayne Coplan allegedly told employees to keep chasing growth even as stolen debit card fraud was draining through the platform, suggesting the company could simply pay a fine if regulators came knocking. Fraudulent deposits peaked at over 80% of total volume on the platform, a number so far removed from the industry norm of roughly 1% that it constitutes a major alert. The fraud, which targeted at least $10 million on Polymarket’s US platform, was flagged in February 2026 by the company’s payment processor. Multiple executives departed in the wake of the incident and an internal investigation was initiated. The case comes as Polymarket was already under regulatory scrutiny for separate concerns related to insider trading and marketing practices, with the CFTC having already demonstrated its willingness to act against the company in 2022 with a $1.4 million fine.
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