Traders sue Polymarket over Strategy Bitcoin market payout

Two traders have filed a lawsuit in New York against the decentralized prediction market platform Polymarket, alleging it wrongfully denied payouts on a market concerning whether the company Strategy would sell Bitcoin. The complaint, filed on July 3 in the Supreme Court of the State of New York, names Polymarket, its founder Shayne Coplan, Chief Marketing Officer Matthew Modabber, and related corporate entities as defendants.

The dispute centers on a market that asked whether Strategy, formerly known as MicroStrategy, would sell any of its Bitcoin holdings by May 31, 2026. Plaintiffs William Wood and Thomas Bush wagered "Yes" on that outcome. According to the lawsuit, Strategy disclosed in a Form 8K filing with the U.S. Securities and Exchange Commission that it sold 32 Bitcoin between May 26 and May 31, within the market's specified timeframe. The plaintiffs contend this filing was the market's designated resolution source and provided clear proof of the sale.

However, Polymarket ultimately settled the market as "No." The plaintiffs allege the platform did so by adding clarifying language after the fact, effectively changing the question from whether a sale occurred by the...