I don't even understand what the conspiracy theory is here. Why would that be something the Biden administration would seek retribution for? And even it were, how would they possibly achieve it before the new administration takes office?
- Many in the "crypto community" have perceive the Biden administration as hostile to it (Polymarket uses Polygon crypto).
- Peter Thiel is an investor in Polymarket. Thiel backed Trump in '16 and is often Republican aligned. Additionally, JD Vance once worked for Thiel. Thiel was a (very) major funder of Vance's senate election campaign.
- Polymarket's markets predicted Trump to win. This, to me, is the biggest stretch of all the conspiracy type stuff. But I guess it goes, "You put your thumb on the scales to show Trump was going to win. <...some causal chain of events...> We lost. Now we're going to punish you."
My guess is that it's as straightforward as: many bettors on Polymarket are U.S. citizens. Polymarket knows this and in all likelihood facilitates this, maintaining the thinnest possible veneer of plausible deniability. While betting on U.S. elections by U.S. bettors is apparently legal [1], it still requires market makers to submit to some registration process. That requirement has not been fulfilled by Polymarket. Also, in 2022 Polymarket settled a case with the CFTC for operating an unregistered derivatives market [2]. Who knows, it might just be related to a violation of that settlement?
[1] https://www.nbcnews.com/politics/2024-election/election-bett...