Polymarket Fires Marketing Chief After Internal Investigation

The betting platform Polymarket has dismissed its chief marketing officer, Matthew Modabber. The executive had been close friends with the company CEO, Shayne Coplan, since their school days.

The decision followed an internal investigation that uncovered episodes of misconduct. Among the issues identified were reports of a wash trading scheme that raised concerns among investors.

The case gained attention in June when allegations surfaced regarding the creation of a fake webpage. The goal was reportedly to display videos of users making profits from non-existent trades. The U.S. Commodity Futures Trading Commission is currently investigating the matter.

The Polymarket board concluded that Modabber remaining in his role was damaging the company reputation. The firm is trying to move away from its informal startup image as it evaluates the possibility of an initial public offering.

CEO Shayne Coplan initially resisted the dismissal due to his personal relationship with the director. However, he eventually accepted that the departure was necessary for the future of the business. The company is now finalizing the terms of the separation agreement.