Overview
- Polymarket fired chief marketing officer Matthew Modabber late Thursday after an internal investigation concluded his marketing practices raised investor and board concerns.
- The review highlighted a fake webpage used to promote staged videos that depicted traders making profits and those reports prompted a Commodity Futures Trading Commission inquiry that is still open.
- Research reported that more than $2.5 million flowed through Modabber’s personal PayPal account and that at least $350,000 went to content creators for promotional posts without required disclosure.
- Modabber was an early hire and a close friend of CEO Shayne Coplan, and sources say his dismissal followed pressure from a board that includes investor Nick Tomaino and lawyer Alex Spiro.
- The board framed the firing as a step to professionalize controls and repair trust ahead of a potential public offering and the company now faces risks from the ongoing CFTC probe and further audits of paid promotions.