Summary

  • Two traders have initiated a lawsuit against Polymarket in New York, claiming the platform incorrectly resolved a market regarding whether Strategy would sell Bitcoin by May 31 as "No."
  • Although Strategy revealed it had sold 32 BTC during that timeframe, Polymarket determined that the sale was not publicly confirmed in time, which the plaintiffs argue constitutes a retroactive alteration of the rules.
  • The lawsuit targets CEO Shayne Coplan and demands the $1-per-share payout for the traders' "Yes" shares, along with damages.

In a legal move, two traders have filed a lawsuit against the prediction market platform Polymarket, asserting that it changed the rules of a market post-factum to deny them a payout linked to Strategy's Bitcoin sale.

William Wood and Thomas Bush submitted their complaint to the New York Supreme Court on July 3, listing Polymarket CEO Shayne Coplan and chief marketing officer Matthew Modabber as defendants.

1 month ago, Polymarket scammed me for $500K, with 1,868 traders losing a total of $6.5M.

Now we're taking Polymarket to court. https://t.co/RPlwQ6ARwI

— willo2 (@willo2_Poly) July 6, 2026

The plaintiffs accuse Polymarket of several violations, including breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment, deceptive practices, and false advertising. They are seeking the value of their "Yes" shares at $1 each, in addition to damages and legal expenses.

Controversial Bitcoin Sale by Strategy

The disputed market questioned whether Strategy would sell any Bitcoin by May 31. Led by Michael Saylor, the company did sell 32 BTC, as disclosed in a June 1 SEC filing, marking its first sale since 2022. However, since the announcement was made a day after the deadline, Polymarket noted that "confirmation achieved outside of the market's timeframe does not qualify," leading to a "No" resolution after a vote by holders of UMA, the oracle used by Polymarket for dispute settlements.

Strategy is not done with its sales; the firm has recently announced a plan to divest up to $1.25 billion more to support its dividends, and just this week, it sold $216 million in Bitcoin as part of its “BTC monetization program.”

The plaintiffs argue that Strategy's SEC filing served as clear evidence according to the market's regulations, which stated that the company's disclosures should be the primary reference. They claim that the subsequent imposition of a confirmation deadline undermined Polymarket's commitment to objective results. According to their complaint, a market that fails to acknowledge a verified event "does not seek truth; it controls payout."

Controversial Markets on Polymarket

In 2026, Polymarket has recorded over 1,150 disputed markets, surpassing the total from the previous year. Investigations by Bloomberg and the Wall Street Journal revealed that a small number of large wallets significantly influence many outcomes, with numerous UMA voters also holding interests in the markets they adjudicate.