Polymarket reportedly fires marketing chief after Cornell assault-case betting outcry
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
Polymarket reportedly fired CMO Matthew Modabber after it pulled a Cornell sexual-assault case contract.
The crypto prediction market's image troubles come as it weighs a possible IPO.
Background
Polymarket is an online predictions market running on crypto and blockchain technology, with a U.S. exchange regulated by the CFTC (the Commodity Futures Trading Commission, a federal derivatives regulator). Matthew Modabber had been its chief marketing officer since January 2024; he co-founded the app BeReal and is a close friend of CEO Shayne Coplan, who became the country's youngest billionaire on the back of the platform's 2024 election odds, according to the New York Post. The reported firing follows a string of regulatory investigations and lawsuits, and the board reportedly concluded Modabber was hindering efforts to improve the company's image as it considers a potential initial public offering.
How it unfolded
- 2022The CFTC determined Polymarket's bets constituted swaps under its jurisdiction; the company settled for $1.4 million and agreed to comply with CFTC regulations.
- Jan 2024Matthew Modabber became Polymarket's chief marketing officer.
- Apr 2025The Ontario Securities Commission fined Polymarket's parent companies; the platform serves a two-year ban in Ontario for violating provincial securities laws.
- Jun 2026A Wall Street Journal investigation concluded Polymarket hired college kids to shoot videos of themselves making money off trades that were not real; two senators urged the CFTC to investigate.
- Sep 2026Additional Journal reporting led the CFTC to investigate scammers placing bets with stolen debit-card numbers; compliance officer Andrew Clifford resigned over fraud concerns.
- Sep 24, 2026New York Governor Kathy Hochul and Attorney General Letitia James sued Polymarket for running an illegal, unlicensed gambling operation.
- Sep 30, 2026A contract on the Cornell sexual assault case was made available on Polymarket.
- Oct 20, 2026Polymarket challenged Ohio's online sports betting regime under the Commerce Clause; the same day it removed the Cornell contract, which had more than $450,000 in volume.
- Oct 22, 2026The New York Post reported Polymarket fired CMO Matthew Modabber following an internal probe.
- Oct 23, 2026The New York Post reported Modabber was fired in the wake of a string of unsavory incidents; Polymarket did not respond to a request for confirmation or comment.
Who’s saying what
- Official
- A Polymarket spokesperson said its goal is to bring objective, data-driven insight to important questions, that the market addressed whether the government would take action — a process deserving scrutiny — and that it removed the market after hearing the crowd.
- Critics
- Online critics called the Cornell contract degrading and questioned why celebrity ambassadors would associate with the company.
- Advocacy
- UltraViolet, a women-led advocacy group, petitioned celebrities including LeBron James and Eli Manning to cut ties with Polymarket and denounce betting on legal cases involving sexual violence.
- Expert
- Brand strategist David Deal said Polymarket needs to recognize that achieving visibility is not the same as earning trust.
Still unverified
The New York Post's report that Modabber was fired cited unnamed sources, and Polymarket did not respond to requests for confirmation or comment; it is unclear whether the bad PR was causal in his reported departure. The CFTC is investigating claims that Modabber's team created a webpage featuring videos of users profiting from fake trades, with no wrongdoing proved and the investigation ongoing.