Polymarket CEO Allegedly Disregarded Fraud Warnings Amid $10M Stolen-Card Scheme
Current and former employees of prediction market platform Polymarket have alleged that CEO Shayne Coplan downplayed compliance concerns during a major fraud incident involving stolen debit cards. According to an investigation by the Wall Street Journal, criminals linked thousands of fraudulent deposits to user accounts in February 2026, with payment processor Checkout.com rejecting over 80% of these transactions—far above industry norms. Employees reportedly raised alarms about the risks and suggested that removing a key withdrawal safeguard could increase money laundering exposure. In response, Coplan allegedly told staff to “just keep growing” and accept potential regulatory fines if discovered. Polymarket later adjusted its policies by limiting linked debit cards per account and partnered with fraud-prevention firm Riskified. By May 2026, the company reportedly returned to normal fraud levels. A spokesperson for Polymarket denied confirming Coplan’s alleged comments but affirmed a commitment to market integrity. The incident has raised concerns about leadership's prioritization of growth over compliance risk management and led to the resignation of US Chief Compliance Officer Andrew Clifford in April 2026.
Topics: compliance_issues financial_fraud payment_processing