Polymarket sued over dispute over Strategy's…

According to Mars Finance, on July 7th, two plaintiffs filed a lawsuit against Polymarket, accusing it of breach of contract and deceptive conduct in a prediction market related to whether Strategy would sell Bitcoin by the end of May. According to the complaint filed on July 3rd in the New York State Supreme Court, plaintiffs William Wood and Thomas Bush named Polymarket, its CEO Shayne Coplan, Chief Marketing Officer Matthew Modabber, and other related entities and individuals as defendants. The complaint alleges that the two plaintiffs held a "Yes" position in a binary prediction market that asked whether Strategy would sell any Bitcoin holdings by May 31st. According to Strategy's Form 8-K filing with the U.S. Securities and Exchange Commission (SEC), the company did sell 32 Bitcoins (BTC) between May 26th and 31st. However, the plaintiffs point out that Polymarket ultimately ruled the market "No." They stated that the platform added a clarification before settlement, effectively changing the criterion from "whether the sale was completed before May 31st" to "whether the sale was publicly confirmed before May 31st." Due to this change in criteria, although Strategy had sold Bitcoin within the deadline, the prediction market was ultimately ruled "no" on June 3rd via a UMA vote (the mechanism Polymarket uses to adjudicate disputed markets).

Polymarket sued over dispute over Strategy's sale of a Bitcoin prediction market.

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