POLYMARKET FACED $10 MILLION FRAUD ATTEMPT AS ITS CEO PUSHED GROWTH OVER COMPLIANCE CONCERNS

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The Wall Street Journal reported that fraudsters used stolen debit cards to attempt at least $10 million in theft on Polymarket's US platform starting in February, with payment processor Checkout.com at one point rejecting over 80% of deposits as fraudulent versus an industry-standard 1%. CEO Shayne Coplan reportedly told staff to prioritize growth and address regulatory fines later, and leadership dropped a same-source withdrawal rule meant to curb money laundering despite employee warnings. Compliance officer Andrew Clifford resigned in April after flagging the fraud issues, and US CEO Justin Hertzberg was subsequently fired, though a Sullivan & Cromwell investigation concluded Polymarket complied with regulations.