Polymarket Reportedly Parts Ways With Marketing Chief After Internal Investigation

Polymarket has reportedly terminated chief marketing officer Matthew Modabber after investigating several alleged misconduct incidents, according to the New York Post. Modabber is a close friend of company CEO Shayne Coplan, making the reported decision particularly sensitive.

The internal review examined multiple controversial episodes, including an alleged campaign involving fabricated trades that reportedly raised concerns among investors. Sources cited by the Post said the company was working to finalize a separation agreement with Modabber, who took over as CMO in January 2024.

CoinDesk contacted Polymarket for comment on the reported departure.

Polymarket is a blockchain-based prediction market where users trade contracts tied to the outcomes of real-world events, including elections, sporting contests, weather conditions and the Oscars.

The platform attracted considerable attention during the lead-up to the 2024 U.S. presidential election, when its forecasts were frequently cited in media coverage. The New York Post reported that Coplan, 28, became the youngest billionaire in the United States.

Fake Trades Became a Point of Controversy

Modabber had previously faced scrutiny following a report published by The Wall Street Journal in June. The newspaper reported that his team created a fake webpage featuring videos that appeared to show Polymarket users making money through trades that were not genuine.

The U.S. Commodity Futures Trading Commission opened an investigation into the matter, and the inquiry remains ongoing. No wrongdoing has been proven so far.

In response to the Journal at the time, Polymarket said it was committed to maintaining markets that were accurate, fair and transparent.

CEO’s Friendship Added Complexity

According to the New York Post, Coplan’s longstanding friendship with Modabber complicated the decision to remove him. One source alleged that Coplan reacted angrily and threatened to fire members of the legal team handling the termination.

The source said the CEO ultimately accepted that parting ways with Modabber would be the best outcome for the business.

Potential IPO Drives Corporate Changes

Polymarket’s board reportedly determined in recent weeks that Modabber was interfering with efforts to reposition the company beyond its scrappy startup identity as it considers a potential initial public offering.

The reported board membership includes Coplan, cryptocurrency investor Nick Tomaino, attorney Alex Spiro and an unnamed Founders Fund partner.

The reported leadership change comes as Polymarket seeks to establish a more mature corporate image while facing continued attention over its business practices and regulatory issues.