Two users of Polymarket, a prediction market platform, have initiated legal action claiming that the company altered the rules of a market after the outcome was revealed to avoid settling winning bets. The lawsuit was filed in the New York Supreme Court on July 3 and names Polymarket's CEO, Shayne Coplan, and CMO, Matthew Modabber, as defendants. Plaintiffs William Wood and Thomas Bush allege breach of contract, fraud, unfair competition, and unjust enrichment. They are seeking compensation for the winnings tied to the shares they purchased, as well as damages and legal costs.
This case revolves around a market inquiry that asked whether Strategy would sell Bitcoin by May 31. Although Polymarket disclosed on June 1 that it sold 32 BTC between May 26 and May 31, it ruled the answer as "No," asserting that the sale fell outside the designated market period. The plaintiffs argue that the SEC's disclosure from Strategy had satisfied the market's initial conditions for assessing compliance regarding new company disclosures. They contend that the platform's timing of the confirmation was introduced only after its ruling, deeming the action unfair.
The lawsuit emerges amidst increasing scrutiny over Polymarket's dispute resolution procedures, which have seen over 1,150 markets disputed in 2026. Polymarket has not issued any public statements regarding the legal claim.
