- Coinbase has notified customers about a subpoena issued by the CFTC in connection with its investigation into Polymarket
- The subpoena seeks customer information related to accounts potentially tied to Polymarket
- Coinbase advises customers that information may be shared unless a legal motion prevents the disclosure by January 15, 2025
Coinbase customers have been informed about a subpoena from the Commodity Futures Trading Commission (CFTC) seeking account-related information as part of its investigation into Polymarket, a decentralized prediction market platform. The email states that Coinbase is legally required to comply with the subpoena unless customers take action, such as filing a motion to quash by January 15, 2025. While no immediate action is required from customers, the potential sharing of sensitive account data has raised concerns from users about their account privacy.
2021 Investigation Takes Another Step Forward
The CFTC’s interest in Polymarket dates back to its 2021 investigation, where the platform was fined $1.4 million for operating unregistered binary options markets. Polymarket, known for its decentralized approach to prediction markets, had facilitated trades on event outcomes such as elections and sports without proper registration as a Designated Contract Market (DCM) or Swap Execution Facility (SEF).
This latest subpoena suggests the CFTC is continuing its enforcement actions related to Polymarket and potentially scrutinizing users tied to the platform.
In the email, Coinbase notifies customers that the exchange “has been served with a subpoena in the above-referenced matter seeking general customer information that includes information related to your account(s).” The company clarifies that no immediate action is required from customers but warns that data could be disclosed unless a “motion to quash or other legal filing” prevents it:
Biden’s CFTC is subpoenaing customer info from @coinbase in their case against @Polymarket pic.twitter.com/YlCdUPwHs7
— eric.eth (@econoar) January 8, 2025
Customer Privacy and Legal Options
Coinbase has emphasized its obligation to comply with legal requests but has left the door open for customers to challenge the subpoena, noting that the deadline for such legal action is January 15, 2025. Respondents to the post displaying the email noted that the purpose is likely to defect if Polymarket accepted funds from US-based users, which it would then use in its suit.
The notification raises privacy concerns, especially as regulatory bodies ramp up investigations into crypto platforms and their users, although users of centralized exchanges should no longer be surprised that their actions are being monitored in 2025.
