Polymarket sued in New York over Strategy Bitcoin market payout denial

Polymarket is facing a New York lawsuit over a disputed prediction market on whether Strategy would sell any Bitcoin by May 31. Plaintiffs William Wood and Thomas Bush allege the platform wrongly denied payouts on winning “Yes” shares even though Strategy disclosed in a June 1 SEC filing that it sold 32 BTC between May 26 and May 31. The complaint, filed July 3 in the New York Supreme Court, names CEO Shayne Coplan and chief marketing officer Matthew Modabber. It alleges breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment in the alternative, deceptive acts and practices, and false advertising. The plaintiffs are seeking the $1-per-share value of their “Yes” shares, plus damages and legal fees. At the center of the case is the plaintiffs’ claim that Polymarket settled the market as “No” only after adding language stating that confirmation achieved outside the market’s timeframe would not qualify. They argue that the market’s designated primary source was Strategy’s own disclosure, making the outcome objective and rendering the added confirmation deadline a retroactive change. The dispute has become part of broader scrutiny around Polymarket’s resolution process. More than 1,150 markets have been disputed on the platform in 2026, exceeding last year’s total, while Bloomberg and The Wall Street Journal have reported that a small group of large wallets can influence many outcomes and that some UMA voters also hold positions in the markets they help judge. Polymarket has not publicly responded to the complaint, even as the platform continues to expand and was reportedly seeking to raise $400 million at a $15 billion valuation in April.