Polymarket Reportedly Fires CMO Amid Internal Review of Alleged Misconduct

Polymarket has reportedly dismissed chief marketing officer Matthew Modabber following an internal investigation into several alleged misconduct episodes, the New York Post reported. Modabber is also a close personal friend of CEO Shayne Coplan.

According to sources cited by the newspaper, the review covered several controversial incidents, including an alleged operation involving fake trades that reportedly alarmed investors. One source said Polymarket was finalizing a separation agreement with Modabber, who had held the marketing chief position since January 2024.

CoinDesk contacted Polymarket for comment on the reported termination.

The platform allows users to trade on predictions about real-world outcomes, covering subjects such as elections, sports, weather and entertainment awards. It relies on cryptocurrency and blockchain technology to operate its markets.

Polymarket became especially prominent ahead of the 2024 U.S. presidential election, when its forecasts were widely discussed in the media. The New York Post reported that Coplan, then 28, became the youngest billionaire in the United States.

Fake Trading Claims Under Regulatory Review

Modabber had previously been linked to controversy following a June report from The Wall Street Journal. The publication said his team had built a fake webpage displaying videos that appeared to show Polymarket users profiting from trades that were not genuine.

The U.S. Commodity Futures Trading Commission opened an investigation into the matter, which remains unresolved. No wrongdoing has been established so far.

At the time, Polymarket told the Journal that it was committed to ensuring its markets remained accurate, fair and transparent.

Personal Relationship Complicated the Termination

Modabber’s friendship with Coplan, which reportedly began in high school, made the separation more difficult, according to the New York Post.

One source claimed Coplan became furious during the process and threatened to dismiss members of the legal team involved in pursuing Modabber’s departure. The source added that the CEO later concluded that ending the relationship was in the company’s best interests.

Board Seeks a More Mature Corporate Image

Polymarket’s board reportedly decided in recent weeks that Modabber was impeding the company’s efforts to move beyond its informal startup reputation as it explores a potential initial public offering.

The board reportedly includes Coplan, crypto investor Nick Tomaino, attorney Alex Spiro and an unnamed partner from Founders Fund.

The reported dismissal comes as Polymarket works to strengthen its corporate standing while facing questions about its marketing practices and an ongoing regulatory investigation.