Polymarket Sued in New York Over Settlement of Strategy Bitcoin Sale Market

Two plaintiffs have filed a lawsuit in New York state court against Polymarket-related entities and CEO Shayne Coplan, alleging an incorrect settlement of a prediction market tied to whether Strategy would sell Bitcoin by May 31, 2026. According to ChainCatcher, the court filings say the market asked whether Strategy would sell Bitcoin before the deadline, and the plaintiffs argue it should have resolved to “Yes.” The complaint cites a Strategy Form 8-K filed with the U.S. Securities and Exchange Commission, which it says disclosed that Strategy sold 32 BTC during the relevant period. The plaintiffs allege Polymarket ultimately settled the market as “No” and later issued a “clarification” that changed the standard used to make the determination.