Polymarket Ousts Top Executive Amid Internal Probe and Regulatory Scrutiny
Matthew Modabber, chief marketing officer and close ally of CEO Shayne Coplan, was fired following an investigation into headline-grabbing incidents, including allegations of staged promotional videos.
Polymarket, the prediction market platform, has fired Chief Marketing Officer Matthew Modabber, a close associate of CEO Shayne Coplan, following an internal investigation. The probe was initiated earlier this year in response to a series of controversial incidents that have raised concerns among investors and attracted regulatory attention.
Modabber's termination comes after reports, including a June exposé by The Wall Street Journal, detailed allegations that his team created a fake webpage to promote staged videos of users profiting from simulated trades. This revelation prompted an ongoing investigation by the Commodity Futures Trading Commission (CFTC), although no wrongdoing has been established.
Sources indicate that Polymarket is finalizing Modabber's separation agreement, with both parties reportedly maintaining mutual respect. A Polymarket spokeswoman declined to comment, and Modabber did not respond to requests for comment.
Modabber's departure is significant due to his close relationship with Coplan, the 28-year-old CEO who became a billionaire following Polymarket's surge in popularity after the 2024 presidential election. Insiders described Modabber as an executive prone to impulsive decisions that led to public relations issues, and his close ties with Coplan had complicated efforts to discipline him. The two men were friends from their time at the Beacon School in Manhattan and have been described as very close during Polymarket's rapid ascent.
Sources reported that Coplan was initially upset by the decision to fire Modabber, even threatening legal team members who pushed for the dismissal. However, he eventually agreed that parting ways with Modabber was in the company's best interest.
The Polymarket board, which includes Coplan, crypto investor Nick Tomaino, lawyer Alex Spiro, and a representative from Peter Thiel’s Founders Fund, reportedly concluded in recent weeks that Modabber's actions were hindering the company's efforts to professionalize its image as it prepares for a potential initial public offering (IPO).
Modabber, who identified himself as "employee #11" at Polymarket, claimed on his LinkedIn page to have significantly increased the company's daily trading volume and built a team of over 50 people across marketing, partnerships, and growth.
However, an internal division reportedly grew between Coplan and Modabber loyalists and other employees and investors who viewed Modabber as a liability. These concerns were exacerbated by Coplan's own past behaviors, which have included alleged workplace outbursts and the spreading of unsubstantiated rumors about the co-founders of rival Kalshi. A Polymarket spokesperson previously denied that Coplan spread sexual rumors about Kalshi's co-founders, attributing such allegations to tensions stoked by Kalshi.
Polymarket's legal team, led by Neal Kumar, had reportedly expressed concerns about Modabber's conduct for some time. Lawyers allegedly advised Modabber to cease the marketing scheme involving fake trades well before it became public in June.
Some Polymarket employees also reportedly grew suspicious of Modabber's relationship with internet influencers, such as Braden Peters, known online as Clavicular. Polymarket has offered betting markets related to Clavicular, including his travel plans.
Further scrutiny fell on Modabber's alleged use of a personal PayPal account, linked to an Italian salad chain he co-founded, to pay influencers for promoting Polymarket. Reports from Politico indicated that these partnerships were often not disclosed, raising questions about compliance and transparency. At the time, Polymarket declined to comment on its influencer strategy, disclosure policies, or Modabber's use of a personal account.
Investors have recently become more involved in guiding Polymarket. A Bloomberg report highlighted that Founders Fund insisted on strengthened financial controls before investing in the company last year.
In August, Polymarket restructured its marketing team, appointing the founder of Bird, the e-scooter startup, to lead the division, which was seen as a demotion for Modabber.