Polymarket faces lawsuit over Bitcoin market ruling

• Two traders have sued Polymarket over its decision to resolve a Strategy Bitcoin sale market as "No".
• The plaintiffs allege Polymarket changed the market rules after Strategy disclosed selling 32 Bitcoin.
• The lawsuit seeks contract payouts, damages and legal fees while adding scrutiny to the platform's dispute process.

Two Polymarket traders have sued the prediction market platform in New York, alleging it wrongly resolved a market on whether Strategy would sell Bitcoin (CRYPTO:BTC) by May 31 despite the company later disclosing a sale of 32 BTC during that period.

The complaint claims Polymarket added a requirement that confirmation had to occur before the market deadline, even though Strategy disclosed the sale in a US Securities and Exchange Commission filing on June 1 covering transactions completed between May 26 and May 31.

The lawsuit, filed by William Wood and Thomas Bush, names chief executive Shayne Coplan and chief marketing officer Matthew Modabber, alleging breach of contract, deceptive practices and false advertising while seeking the US$1-per-share payout on their "Yes" positions, damages and legal fees.

The case adds to scrutiny of Polymarket's dispute resolution process, and following the report there was no share price reaction because the company is privately held.

The disputed contract was settled through a vote by UMA token holders after Polymarket stated that confirmation outside the market's timeframe did not qualify, while the plaintiffs argue the company's SEC filing satisfied the market's original rules.

Polymarket has recorded more than 1,150 disputed markets in 2026, according to the report, while the platform has continued expanding after its US business became a Commodity Futures Trading Commission-registered exchange and attracted significant investment interest.

At the time of reporting, Bitcoin price was $63,473.14.