Polymarket Processor Reported Fraud Surge as Compliance Team Raised Concerns

In February, a company handling debit card transactions for Polymarket's U.S. betting platform reported that fraudsters were flooding the app and trying to steal at least $10 million. According to ChainCatcher, users linked stolen debit cards to Polymarket U.S. accounts, placed bets, and attempted to withdraw funds to clean cards or accounts they controlled. The processor at one point rejected more than 80% of deposits as fraudulent, far above the industry standard of about 1%. Polymarket employees raised concerns to Chief Executive Shayne Coplan, and people familiar with the matter said the compliance team was shocked by Coplan's response: keep growing and pay any fine if regulators find out.