TLDR Two traders sued Polymarket in the New York Supreme Court on July 3. The case involves a market asking whether Strategy would sell Bitcoin before May 31. Strategy confirmed a 32 BTC sale in a June 1 SEC filing, one day after the market closed. Polymarket settled the market as “No,” and the traders say this broke the platform’s own rules. Polymarket is facing more than 1,150 disputed markets in 2026, already above last year’s total.
Two Polymarket users have filed a lawsuit against the prediction market platform. They say it changed the rules of a market after trading had already ended.
The traders, William Wood and Thomas Bush, filed their complaint on July 3 in the New York Supreme Court. They argue Polymarket’s handling of a Bitcoin sale market cost them a payout they had already earned.
The lawsuit names Polymarket’s chief executive, Shayne Coplan, and its chief marketing officer, Matthew Modabber. Wood and Bush are asking the court to award them one dollar per share, along with damages and legal costs.
They claim Polymarket broke its agreement with users. The complaint also accuses the platform of acting in bad faith and misleading traders through its marketing.
What the Market Asked
The disputed market posed a simple question. Would Strategy sell any Bitcoin before May 31?
Strategy later confirmed in a June 1 SEC filing that it had sold 32 BTC between May 26 and May 31. That filing came one day after the market’s deadline.
Because the confirmation arrived late, Polymarket added a note saying it would not count toward the market’s outcome. The market was then settled as “No” following a vote from UMA, the oracle system Polymarket uses to resolve disputes.
Strategy has continued selling Bitcoin since then. The company has outlined