Polymarket has dismissed Chief Marketing Officer Matthew Modabber following an internal investigation into controversial marketing practices that drew regulatory scrutiny and raised concerns among the prediction market platform’s investors.
The October 22 departure ends Modabber’s tenure as one of Polymarket’s earliest executives and a longtime confidant of founder and CEO Shayne Coplan. The investigation examined allegations involving staged betting videos, undisclosed influencer payments and promotional campaigns that presented simulated trades as genuine winnings.
Polymarket is reportedly finalizing Modabber’s separation agreement. The company declined to comment on the dismissal, while Modabber did not respond to requests for comment.
Fake Betting Videos Triggered Marketing Investigation
Modabber’s removal follows a series of revelations about Polymarket’s efforts to attract customers through social media.
Between December 2025 and May 2026, paid creators published 1,105 promotional videos, including hundreds filmed using replica websites that closely resembled Polymarket’s actual trading platform.
The videos depicted approximately $1.9 million in simulated wagers. Another 118 clips showed nearly $900,000 in fabricated winnings, although equivalent bets placed on the real platform would have produced losses exceeding $166,000.
The campaign generated more than 140 million views across TikTok, Instagram and YouTube, with creators reportedly receiving between $2,000 and $3,000 monthly. Some initially failed to disclose their financial relationships with Polymarket.
The fake-win promotions also used outdated footage and altered headlines to portray losing positions as profitable trades.
Polymarket subsequently committed to reviewing its promotional content. Company lawyers had reportedly raised concerns about the simulated trading campaign before it became public in June and instructed Modabber to discontinue the practice.
$2.5 Million PayPal Trail Added to Internal Concerns
The investigation also examined Modabber’s personal PayPal payments to social media creators.
Transactions between January 2025 and February 2026 totaled more than $2.5 million across over 800 recipients. At least $350,000 went to identified influencers, some of whom promoted Polymarket without clearly disclosing that their posts were sponsored.
The payments were made through an account associated with an email address from a separate business Modabber co-founded.
Modabber, who joined Polymarket in January 2024, had helped build its marketing operations into a team of more than 50 employees. However, disagreements over his management practices reportedly widened as investors pushed for stronger internal controls.
Coplan initially resisted the dismissal and was reportedly angered by efforts to remove his longtime friend. The company’s board ultimately backed the separation, with Coplan later accepting the decision.
Polymarket had already restructured its marketing department in August, bringing in new leadership and reducing Modabber’s responsibilities.
Regulatory Scrutiny Complicates Polymarket’s IPO Plans
The marketing controversy has also attracted attention from U.S. regulators and lawmakers.
Senators Adam Schiff and John Curtis previously pressed the CFTC to investigate the platform’s advertising practices, questioning whether simulated trades and undisclosed sponsorships violated federal requirements.
A CFTC investigation into Polymarket’s marketing activities has also been reported, although the regulator has not publicly established wrongdoing.
Separately, the National Association of Consumer Advocates filed a lawsuit in Washington, D.C., on June 26, naming Polymarket, Coplan and Modabber. The complaint alleges deceptive advertising practices involving undisclosed paid endorsements, staged wagers and marketing directed at college-aged consumers.
The allegations remain unresolved. The leadership change comes as Polymarket strengthens its financial controls and compliance operations ahead of a potential public listing. The company has reportedly explored an IPO as early as 2027 while attracting investment from major financial and venture capital firms.
Modabber’s departure follows several other executive changes, including the dismissal of Polymarket’s former U.S. CEO, Justin Hertzberg, and departures within its compliance and regulatory teams.
Polymarket has not announced a replacement chief marketing officer or confirmed a timetable for a public offering.
Be the first to comment