Polymarket, a platform for prediction markets, has dismissed its Chief Marketing Officer, Matthew Modabber, as part of an internal investigation into the company's marketing practices. This decision comes in response to regulatory scrutiny and concerns from investors about the company's promotional tactics.
Reported initially by The New York Post, Modabber’s exit signifies a notable change in Polymarket's leadership, particularly as he was one of the first executives hired by CEO Shayne Coplan in 2024.
The company is in the process of finalizing a separation agreement, but neither Polymarket nor Modabber has publicly commented on the circumstances surrounding his dismissal.
The investigation scrutinized various marketing strategies, raising alarms over practices such as the use of staged betting videos and collaborations with social media influencers who failed to provide adequate transparency. Furthermore, some marketing materials suggested that simulated trades were actual customer profits, a claim highlighted earlier this year in a Wall Street Journal investigation.
The investigation revealed instances where online creators showcased videos falsely claiming that customers had won around $1.9 million on the platform. These deceptive videos were part of a larger strategy aimed at attracting new users to Polymarket's offerings.
The internal review also delved deeper, with Politico uncovering scrutiny concerning over $2.5 million in payments that were funneled through Modabber’s personal PayPal account to more than 800 recipients between January 2025 and February 2026. Notably, out of this total, at least $350,000 was reportedly allocated to recognized influencers, prompting serious compliance and disclosure concerns.
Polymarket is currently undergoing organizational changes to strengthen its internal controls and improve regulatory compliance. The departure of Modabber raises speculation about the company's intentions to enhance its public image, potentially ahead of an Initial Public Offering, though Polymarket has refrained from commenting on any IPO plans. The company did not respond promptly to an inquiry from iGB regarding the matter.
