Overview
- Two traders filed a complaint in New York state court on July 3 alleging Polymarket refused to redeem winning “Yes” shares on a market about whether Strategy sold any Bitcoin by May 31, 2026.
- The plaintiffs say Strategy’s SEC Form 8‑K showed a sale of 32 bitcoins during the reporting period that satisfied the market’s original binary question about whether a sale occurred before the deadline.
- The complaint charges that Polymarket posted new clarification language after trading ended that required public confirmation by the deadline and then resolved the market as “No,” denying payouts to holders of winning positions.
- Named defendants include Polymarket entities Adventure One QSS Inc. and Blockratize Inc. and executives Shayne Coplan and Matthew Modabber, and the suit seeks damages and equitable relief for breach of contract and deceptive business practices.
- The case comes as Polymarket faces separate scrutiny reported by Bloomberg of a CFTC inquiry and prior reports of a frontend supply‑chain hack and alleged staged influencer promotions, which could increase legal and regulatory exposure.