Two Polymarket traders have filed a lawsuit against the prediction market platform, accusing it of rewriting market rules after the fact to deny them a winning payout tied to Strategy’s Bitcoin sale. The complaint was filed in the New York Supreme Court on July 3 by William Wood and Thomas Bush, naming Polymarket CEO Shayne Coplan and chief marketing officer Matthew Modabber as defendants.
The Disputed Market
The market in question asked a simple question: would Strategy sell any Bitcoin by May 31? The Michael Saylor-led firm did exactly that, disclosing in a June 1 SEC filing that it sold 32 BTC between May 26 and May 31 for approximately $2.5 million, marking the company’s first Bitcoin sale since 2022.
Because that SEC disclosure landed one day after the deadline, Polymarket added a note stating that ‘confirmation achieved outside of the market’s timeframe does not qualify.’ The contract subsequently resolved ‘No’ following a vote by holders of UMA, the oracle Polymarket uses to settle disputes. One plaintiff, posting under the handle willo2, said on X that the resolution cost him $500,000 and claimed a total of 1,868 traders lost a combined $6.5 million, figures that have not been independently verified.
The plaintiffs argue Strategy’s June 1 filing was unambiguous proof under the market’s original rules, which designated the company’s SEC disclosures as the primary source. Adding a confirmation deadline after the fact, the complaint argues, gutted Polymarket’s promise of objective outcomes. The suit states that a market that won’t honor a proven event ‘does not seek truth; it controls payout.’
Legal Claims and Relief Sought
Wood and Bush allege multiple counts including breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment, deceptive acts and practices, and false advertising. They are seeking the full $1-per-share value of their ‘Yes’ shares, plus damages and legal fees. Burwick Law, which filed the case, said it is weighing similar claims from other traders who participated in the same market.
A Pattern of Disputed Markets
The Strategy dispute is not an isolated incident. Polymarket has logged more than 1,150 disputed markets in 2026, already surpassing the total for all of last year. Investigations by Bloomberg and the Wall Street Journal found that a small cluster of large wallets swings many outcomes, with numerous UMA voters also holding positions in the markets they are judging. The Strategy fight was the platform’s largest controversy since a $237 million market over whether Ukraine’s president wore a suit.
Strategy has since continued selling Bitcoin, outlining a plan to offload up to $1.25 billion more to fund dividends. This week, the company sold approximately $216 million in Bitcoin under what it calls its ‘BTC monetization program.’
Platform’s Growth Continues Despite Scrutiny
Polymarket has not publicly responded to the complaint, and no court has ruled on the claims, which remain unproven allegations. The legal pressure has not slowed its expansion: the platform’s US arm is now a CFTC-registered exchange, it has drawn close to $2 billion from NYSE parent ICE, and was last valued at $9 billion. In April, Polymarket was reportedly in talks to raise $400 million at a $15 billion valuation.
