Polymarket Reportedly Dismisses CMO After Probe Into Alleged Misconduct

Polymarket has reportedly removed Matthew Modabber from his role as chief marketing officer following an internal investigation into several alleged incidents of misconduct, the New York Post reported. Modabber is also a longtime friend of CEO Shayne Coplan.

The company’s decision followed scrutiny of multiple controversial episodes, including an alleged scheme involving fabricated trades that reportedly unsettled investors. Sources cited by the Post said Polymarket was in the process of completing a separation agreement with Modabber, who had served as CMO since January 2024.

CoinDesk reached out to Polymarket for a response.

Polymarket is a cryptocurrency-powered prediction market that lets users trade on the outcomes of real-world events, including political elections, sporting events, weather forecasts and entertainment awards.

The platform gained widespread attention before the 2024 U.S. presidential election as news organizations frequently referenced its election probabilities. The New York Post reported that Coplan, aged 28, became the youngest billionaire in the United States.

Fake Trading Allegations Draw Scrutiny

Questions about Modabber’s conduct had previously emerged in a Wall Street Journal report published in June. According to the newspaper, Modabber’s team developed a fake webpage featuring videos that appeared to show Polymarket users earning profits from trades that had never taken place.

The allegations prompted an investigation by the U.S. Commodity Futures Trading Commission. The inquiry is still underway, and no wrongdoing has been established to date.

Polymarket responded to the Journal at the time by saying it was committed to maintaining markets that were accurate, fair and transparent.

Coplan’s Personal Ties Reportedly Delayed the Exit

Modabber’s close friendship with Coplan, which dates back to their high school years, reportedly made his removal more difficult.

A source quoted by the New York Post claimed that Coplan became angry during the process and threatened to dismiss members of the legal team seeking Modabber’s departure. The source added that the CEO eventually accepted that ending the relationship was necessary for the company.

Board Focuses on IPO Readiness

Polymarket’s board reportedly decided in recent weeks that Modabber was hindering its efforts to move away from its informal startup identity as the company explores a possible initial public offering.

The board reportedly includes Coplan, crypto investor Nick Tomaino, attorney Alex Spiro and an unnamed partner at Founders Fund.

Modabber’s reported departure comes as Polymarket works to strengthen its corporate reputation while navigating regulatory scrutiny and concerns over its marketing practices.