Polymarket Halts French Trading Amid Regulatory Scrutiny Over Massive Trump Election Bet
In a significant development for the crypto prediction market space, Polymarket has suspended trading activities for users in France, following an investigation by the country’s gambling regulator into an $80 million winning bet on Donald Trump’s victory in the recent U.S. presidential election.
The platform announced Friday that while French users can still access market information, they are now restricted from placing new trades. This move comes as France’s National Gaming Authority (ANJ) scrutinizes the platform’s compliance with local gambling laws, particularly in the wake of controversial betting activity by a French trader known as “Théo” or “Fredi9999.”
“Users in France can continue to access Polymarket for critical information about the events that matter most to them, but for the time being we’ve hit pause on new trades,” a Polymarket spokesperson stated, characterizing the decision as a proactive measure while the company engages with French stakeholders.
The investigation was reportedly triggered by Théo’s substantial wagering activity, which resulted in nearly $80 million in profits from bets on Trump’s election victory. While facing allegations of market manipulation, Théo maintained in a Wall Street Journal interview that his decisions were purely analytical, based on commissioned polls, and devoid of political motivation.
The regulatory challenges in France add to Polymarket’s growing legal complications. The platform has been operating under restrictions in the United States since 2022, following a settlement with the Commodity Futures Trading Commission (CFTC). More recently, the platform faced additional scrutiny when FBI agents conducted an early-morning search of CEO Shayne Coplan’s Manhattan residence, seizing his mobile devices. The company has characterized this FBI action as political retaliation for its markets’ accurate prediction of Trump’s victory.
France’s ANJ, which oversees online gambling activities in the country, has the authority to block websites offering unauthorized gambling services. While the regulator has acknowledged its investigation into Polymarket, it has not officially announced any policy changes that might have prompted the platform’s decision to restrict French users.
The situation highlights the growing regulatory challenges faced by crypto-based prediction markets as they navigate the complex landscape of international gambling laws while handling increasingly significant betting volumes on major political events.
