Polymarket Fires Marketing Chief After Fake-Win Video Probe

Polymarket has fired its chief marketing officer after an internal investigation into several episodes, including an alleged scheme built on fake trades, the New York Post reported, citing unnamed sources.

The firing reaches the top of a marketing operation already under federal scrutiny. The Commodity Futures Trading Commission (CFTC) is investigating claims that Modabber's team promoted videos of users winning on trades that were never real. Polymarket's board concluded he was getting in the way of the company's effort to shed its startup image as it eyes a possible IPO, according to the Post.

Staged Wins Drew Federal Scrutiny

The Wall Street Journal reported in June that paid creators posted more than 1,100 promotional videos showing about $1.9 million in simulated bets, according to multiple reports. Some clips showed nearly $900,000 in winnings that were staged.

For a viewer, that meant watching young creators cash out on bets that never touched real money. Some creators did not disclose that Polymarket was paying them, according to the same reports.

Senators Adam Schiff and John Curtis asked the CFTC on June 26 to look into the platform's advertising, according to multiple reports. The CFTC investigation is ongoing, and no wrongdoing has been proven. Polymarket told the Journal at the time it was "committed to maintaining accurate, fair, and transparent markets."

A Friendship Complicated the Exit

Modabber had run marketing since January 2024. He has been friends with Chief Executive Shayne Coplan since high school, the Post said.

An "irate" Coplan threatened to fire members of the legal team pursuing the termination, one source told the paper. Coplan later accepted that parting ways was best for the company.

The board that made the call includes Coplan, crypto investor Nick Tomaino, lawyer Alex Spiro and an unnamed partner at Founders Fund. The exit follows Polymarket's talks to raise money at a $20 billion valuation and a separate CFTC look at a $10 million card-fraud attempt.

Polymarket is still finalizing a separation agreement with Modabber, according to one source. The CFTC has not announced findings in its marketing investigation.

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