Two traders have sued Polymarket, alleging the prediction market platform incorrectly resolved a bitcoin sale market as "No" despite documentary evidence showing the trade occurred.
According to The Block, the dispute centers on a market tied to Strategy, a bitcoin-holding company. Plaintiffs contend that Polymarket's resolution contradicts a Form 4 SEC filing in which Strategy disclosed selling 32 BTC between May 26 and May 31. The traders argue this disclosure should have triggered a "Yes" resolution, but the platform closed the market on the opposite side.
Prediction market resolution disputes typically hinge on how platforms interpret their own criteria when evidence appears to conflict with an outcome call. Polymarket's rulebook specifies how markets are to be judged, though the details of those rules and how they were applied in this case are not yet public. The complaint would shed light on what evidence the plaintiffs presented at time of resolution and what Polymarket cited to justify its decision.
Neither the plaintiffs' full names nor their filed lawsuit number have been disclosed in available reporting. Polymarket has not issued a public statement on the suit. Both parties' formal filings will establish whether the dispute turns on a genuine reading gap in the resolution criteria, a timing technicality, or a factual disagreement about what the SEC filing actually proves.
Prediction markets in the U.S. operate in a regulatory gray zone. The CFTC oversees binary contracts on event outcomes, though enforcement against individual market disputes is rare. Polymarket itself has faced prior regulatory scrutiny over market integrity and user custody. Any court ruling on this case could set precedent for how U.S. courts treat platform resolution decisions, particularly when public filings collide with market rulings.