Two Polymarket users have filed a lawsuit against the prediction market platform, alleging it changed the rules of a market after the outcome was known to avoid paying winning bets.
The suit, which was lodged in the New York Supreme Court on July 3, has named Polymarket’s CEO Shayne Coplan and CMO Matthew Modabber as defendants. The plaintiffs, William Wood and Thomas Bush, have claimed that the company has committed breach of contract, fraud, unfair competition and unjust enrichment. They seek compensation for their winnings on the shares they purchased as well as damages and costs of the litigation process as a whole.
The case deals with a market which proposed asking whether Strategy would sell Bitcoin by May 31 or not. Despite the fact that the company made a public disclosure on June 1, stating that it sold 32 BTC on its way from May 26 to May 31, Polymarket ruled it “No,” saying that it corresponds to the outcome occurring out of the market period.
It is claimed by the plaintiffs that an SEC disclosure of Strategy met the market’s initial criteria that permitted assessing compliance in the case of new disclosures of a company. According to them, the platform introduced this timing of confirmation only after it made its ruling and that is unfair.
Lawsuit comes amid growing scrutiny of Polymarket’s dispute resolution process. Platform has recorded more than 1,150 disputed markets in 2026.
Polymarket has not publicly commented on the lawsuit.
