The Commodity Futures Trading Commission (CFTC) has reportedly issued a subpoena to American cryptocurrency exchange Coinbase as part of an ongoing investigation into the decentralized prediction market platform Polymarket.

On a social media platform called X, Eric Conner, the co-founder of the Ethereum (ETH)-focused website EthHub, shared what appears to be a screenshot of an email from Coinbase informing customers that the exchange has received a subpoena from the CFTC.

According to the email, the derivatives market regulator is requesting general customer information from Coinbase as part of its investigation into Polymarket. Polymarket is a cryptocurrency-based betting platform that allows users to place bets on the outcome of future events by trading shares in USDC.

“Biden’s CFTC is subpoenaing customer info from Coinbase in their case against Polymarket.”

Polymarket gained significant popularity during the US presidential election, and its users accurately predicted the victory of Donald Trump.

In November, the Federal Bureau of Investigation conducted a raid on the home of Shayne Coplan, the CEO of Polymarket, following allegations that the platform violated a settlement agreement with the CFTC by allowing trades from US-based users. However, Coplan argues that the action is politically motivated.

“The incumbents should take a moment to reflect and realize that adopting a more pro-business, pro-startup approach may have changed their fate in this election.”

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Generated Image: Midjourney.