Two plaintiffs have filed a complaint against Polymarket alleging breach of contract and deceptive practices in the resolution of a prediction market tied to whether Strategy would sell bitcoin by May.
The lawsuit, filed by William Wood and Thomas Bush in the New York Supreme Court on July 3, names Polymarket, CEO Shayne Coplan, CMO Matthew Modabber, and other related entities and individuals as the defendants.
According to the filing, the plaintiffs held "Yes" shares in a binary market asking whether Strategy would sell any of its bitcoin holdings by May 31. Strategy disclosed in a Form 8-K filing with the U.S. Securities and Exchange Commission that it had sold 32 BTC between May 26 and 31.
Per the complaint, Polymarket ultimately resolved the market as "No" after adding clarifying language that plaintiffs allege effectively required public confirmation by the May 31 deadline rather than merely a sale by that date. On June 3, the prediction market's final review concluded in a "No" after a UMA vote, which is used to resolve disputed markets on Polymarket.
Breach of contract
