FBI Raids Polymarket Founder Amid DOJ Probe

The Breakdown First Five - Thursday, November 14, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. CPI Nothingburger

October CPI came in perfectly in line with expectations. Headline CPI is ticked up to 2.6% while Core remained level at 3.3%. A small drop in energy costs was offset by a small rise in food costs. Generally the print was a nothingburger, checking another box on the way to a December rate cut. Over the longer term, inflation is no longer making progress and could demand a pause early next year. 

4. Listings Galore

With the threat of an SEC enema dissipating, exchanges are rushing to catch up on two years of listings. Robinhood has relisted SOL, Cardano and XRP after removing them in 2023 in deference to the SEC’s lawsuits. Coinbase has added WIF and PEPE, their highest profile listings since they were sued. Binance appears to be listing memecoins somewhat at random, creating accidental millionaires. With no cop on the beat, anything goes. 

3. Kashkari Softens Bitcoin View

Minneapolis Fed President Neel Kashkari is softening his views on Bitcoin, if only slightly. During a brief discussion with Coindesk, he said, "I will have an open mind." Less than a month ago, Kashkari called cryptocurrencies "worthless," "fraudulent" and "nonsense." He is on record as suggesting they are useless because no one transacts with them. 

2. Lutnick for TresSec

Cantor Fitzgerald CEO and owner of a “shit-ton” of Bitcoin Howard Lutnick is reportedly being considered for Treasury Secretary in the Trump administration. As recently as Tuesday morning, former hedge fund manager Scott Bessent was viewed as the consensus pick. However reports suggest Lutnick, who is also the co-lead of the transition team, has been "campaigning hard" to secure the job.

1. FBI Raids Polymarket

The FBI raided the home of Polymarket founder Shayne Coplan on Wednesday morning, seizing his phone and electronics. No arrests were made. According to Bloomberg, the platform is under DOJ investigation for allowing access to US citizens in contradiction of a CFTC settlement. The raid is being viewed as political retribution after Polymarket correctly showed Trump having better odds than mainstream polling.