willo2 has just filed a lawsuit against polymarket, and this might be the first time a prediction market resolution ends up in a courtroom
in may, polymarket listed a market titled "microstrategy sells bitcoin by may 31?" - this market would resolve yes if MSTR sells any BTC by 11:59pm ET on may 31, resolved on info from MSTR, on-chain data, or credible reporting
- late may: strategy moves ~$30m of BTC to coinbase prime, and YES starts pumping
- june 1: strategy files an 8-K - it sold 32 BTC, its first sale in over three years. the filing says the sale happened inside the window
- the market spikes to ~80c, the top YES holder sizes up to ~$500k, and the average YES trade across the market ends up at 58.6c - meaning most of the volume came in after the 8-K was public
- the market is under dispute and heavily debated for days
- polymarket clarifies: confirmation achieved outside the market's timeframe doesn't qualify, and the market resolves no
- according to the top holder's count, 1,868 YES holders lost ~$6.5m
then it escalated:
- he spent june posting receipts and organizing affected traders
- on july 6 he filed suit against polymarket through burwick law
- the same day, polymarket listed a new MSTR-sells market with completely rewritten rules
- and today, the markets-team member who issued the original clarification appears to be off the team - his discord role was removed, with no official statement either way
1 month ago, Polymarket scammed me for $500K, with 1,868 traders losing a total of $6.5M.
Now we're taking Polymarket to court.