Traders filed lawsuit against Polymarket over failure to rule on a betting market related to a strategic Bitcoin sale.
Regulation & Gov ·
Two traders have filed suit against Polymarket in New York Supreme Court, contending that the platform improperly resolved a prediction market on Strategy's Bitcoin holdings. William Wood and Thomas Bush filed the complaint on July 3, naming CEO Shayne Coplan and chief marketing officer Matthew Modabber. The suit alleges breach of contract, deceptive practices, and unjust enrichment, seeking the $1-per-share value of the traders' "Yes" positions plus damages and legal costs.
The market asked whether Strategy would divest any Bitcoin by May 31. Strategy did sell 32 BTC between May 26 and 31, disclosed in a June 1 SEC filing. Polymarket and its oracle UMA voted to resolve the contract as "No," citing that the public confirmation came after the deadline—a qualification the plaintiffs argue was not part of the original market terms. The suit contends that Strategy's SEC filing constituted unambiguous proof under rules designating the company's disclosures as the primary confirmation source.
Polymarket has faced mounting scrutiny over market resolution disputes. The platform recorded over 1,150 disputed markets in 2026, surpassing the prior year's total. Research found that concentrated wallet clusters frequently influence outcomes and that some UMA voters hold stakes in the markets they adjudicate. The platform has not publicly commented on the lawsuit and continues to operate as a CFTC-registered exchange.