Key facts
- Two traders have sued Polymarket in New York, alleging a wrongful resolution of a market concerning Strategy's Bitcoin sale.
- The market asked whether Strategy would sell Bitcoin by May 31; Strategy disclosed selling 32 BTC within that window.
- Polymarket ruled 'No' because the disclosure occurred after the market's specified confirmation deadline.
- Plaintiffs allege breach of contract, deceptive practices, and seek payouts on their 'Yes' shares plus damages.
- Polymarket's U.S. arm is a CFTC-registered exchange, and the platform has seen a rise in disputed markets.
Two traders have filed a lawsuit against prediction market platform Polymarket in New York, alleging that the platform improperly resolved a market concerning Strategy's sale of Bitcoin. The traders, William Wood and Thomas Bush, claim Polymarket retroactively altered its rules to deny them a payout on their 'Yes' shares.
The disputed market centered on whether Strategy, led by Michael Saylor, would sell any Bitcoin by May 31. Strategy disclosed in a June 1 SEC filing that it had sold 32 BTC between May 26 and May 31. However, Polymarket ruled the sale did not qualify because the confirmation was achieved outside the market's specified timeframe. This decision was reportedly made after a vote by holders of UMA, the oracle Polymarket uses for dispute resolution.
The plaintiffs argue that Strategy's SEC filing constituted unambiguous proof under the market's own rules, which designated company disclosures as the primary source. They contend that adding a confirmation deadline after the fact undermined Polymarket's commitment to objective outcomes. The lawsuit, filed in the New York Supreme Court, names Polymarket CEO Shayne Coplan and CMO Matthew Modabber, and seeks the $1-per-share value of their 'Yes' shares, along with damages and legal fees.
This dispute follows a pattern of market resolutions on Polymarket, which has logged over 1,150 disputed markets in 2026. Investigations by Bloomberg and the Wall Street Journal have highlighted concerns about large wallets influencing outcomes and UMA voters holding stakes in the markets they judge. The current case is described as the platform's largest since a $237 million market last year concerning whether Ukraine's president wore a suit. Burwick Law, representing the plaintiffs, is considering similar claims from other traders.
Polymarket, whose U.S. arm is a CFTC-registered exchange, has received close to $2 billion in investment from NYSE parent ICE and was valued at $9 billion. The platform was reportedly seeking to raise $400 million at a $15 billion valuation.