Renowned betting platform Polymarket is facing outrage from financial regulators and the general public for accepting wagers on the Palisades fire, which is currently rife in Los Angeles.
The prediction platform, which rose to popularity during the 2024 US election cycle, is accepting wagers on various “markets,” including the number of acres or cities the fire would affect. After displaying its markets on social media, Polymarket was met with an intense backlash from many users. One user posted on X:
The Palisades Fire: Effects and the Betting Market
The fire, which has claimed two lives, has been a major attraction on the betting platform, with people shelling out thousands to wager on the fire. Thousands of properties have also been destroyed, including the Corpus Christi Church in Pacific Palisades and the million-dollar homes of celebrities, including well-known actor James Wood.
CFTC Ongoing Investigation
Reports of the fire incident come amid ongoing investigations by the CFTC. The investigation has subpoenaed Coinbase to disclose user data linked to Polymarket. A contributor to the Ethereum network, Eric Conner, shared a screenshot of the email containing the subpoena on January 8. According to the email, the CFTC has demanded that Coinbase fully disclose certain customer data.
Following the 2024 US presidential elections, the FBI raided the residence of the prediction platform’s CEO, Shayne Coplan. The CFTC later announced that the investigation centered on potential violations of restrictions on US user participation.
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