Two Polymarket traders have filed a lawsuit in New York alleging that the predictive market platform wrongly settled a contract relating to the sale of Bitcoin by Strategy and, as a result, refused to pay the proceeds in the “yes” direction. The prosecution documents are also named by the CEO of Polymarket, Shayne Coplan, and the Chief Marketing Officer Matthew Modabber.

The controversy is about selling money by the end of May.

The market question was whether Strategy would sell any bitcoin by 31 May. According to documents submitted by Strategy to the United States Securities and Exchange Commission on 1 June, the company sold 32 bitcoins between 26 and 31 May. This is the first time that it has sold bitcoin since 2022.

However, Polymarkett ultimately settled the market as “No”. The reason given by the platform was that the relevant sale, although occurring within the market period, was publicly confirmed after the cut-off date and therefore did not meet the settlement conditions. The results were subsequently confirmed by a vote of UMA currency holders. The UMA is a prophecies system used by Polymarket to adjudicate disputes.

The plaintiff claimed that the platform had subsequently changed its standard.

The plaintiff argued that Strategy ' s regulatory documents constituted clear evidence, as the market had originally identified company disclosures as the main source of information. They claim that Polymarket's subsequent inclusion of a statement that “public confirmation must be completed within the market period” amounts to a change in the original rule and directly affects the settlement results.

The claims listed in the pleadings included breach of contract, breach of the obligation to deal in good faith, deceptive commercial conduct and false propaganda. The plaintiff requested that its “yes” position be paid at US$ 1 per share and that compensation and fees be recovered.

  • Prosecution time: 3 July
  • Place of prosecution: New York State Supreme Court
  • Number sold: 32 BTC

The number of platform disputes continues to rise

According to the report, Polymarket had more than 1,150 disputed markets in 2026, an increase over the last year. Bloomberg and the Wall Street Journal had also previously reported that a small number of large purses could have a greater impact on some of the results, while some UMA voters held relevant market positions.

This Strategy-related dispute is one of the most interesting disputes the platform has had in recent times. Burwick Law, acting on behalf of the plaintiff, stated that it was assessing whether a similar claim was being made on behalf of other traders.

Polymarket has not responded publicly.

By the time of the publication of the report, Polymarket had not responded publicly to the lawsuit. Despite the continuing increase in disputes, the expansion of the platform has not significantly slowed. Reports indicate that its United States operations have become an exchange registered with the United States Commodity Futures Trading Commission.

It was also reported that Polymarket had recently received close to $2 billion of support from ICE, the head company of the New York Stock Exchange, with an updated estimate of $9 billion. In April of this year, it also came out that the company was seeking to finance $400 billion in the $15 billion valuation.