Two users have filed a lawsuit in New York against Polymarket, alleging the prediction platform altered market resolution rules after wagers were placed. The legal action centers on a contract regarding whether Strategy would sell a portion of its Bitcoin reserves before May 31, 2026.
Disputed Resolution and Legal Claims
Strategy completed the sale of 32 BTC within the designated timeframe. Despite this, Polymarket resolved the market as "No" because the transaction was publicly disclosed after the deadline expired. One plaintiff wagered approximately $695,000 on the "Yes" outcome and anticipated a $220,000 payout. The complaint states that the initial terms did not require public verification of the sale prior to the cutoff date.The lawsuit characterizes the platform's actions as a bait-and-switch tactic and lists breach of contract, unfair advertising, unjust enrichment, and user misrepresentation as primary violations. Plaintiffs estimate that the disputed resolution affects contracts totaling more than $6.5 million. Following the incident, Polymarket revised the wording of similar markets to specify that outcomes depend on official public announcements by the deadline rather than the actual occurrence of events.
Source: iGaming News.