Polymarket has fired its chief marketing officer, Matthew Modabber, following an internal investigation into incidents that raised concerns among the company’s investors.
The company is reportedly working toward a more professional corporate image as it weighs a potential initial public offering.
What the investigation found
The internal review began earlier in 2026. It centered on marketing practices that set off alarms among investors.
Two issues stand out. The first involves a fake webpage that promoted staged videos showing traders making profits.
The second concerns money flows. More than $2.5 million was routed through Modabber’s personal PayPal account, according to the research.
At least $350,000 of that reportedly went to content creators for promotional posts that did not carry the required disclosures.
The Wall Street Journal first reported on the practices in June 2026. The fake webpage has been linked to an investigation by the Commodity Futures Trading Commission, which the research describes as ongoing.
Polymarket has not faced any formal regulatory finding of wrongdoing.
From employee number 11 to the exit
Modabber was no peripheral figure. He joined Polymarket in January 2024 as the company’s eleventh employee.
He was also described as a trusted advisor to CEO Shayne Coplan. That makes his October 2026 dismissal more than a routine personnel change.
During his tenure, Modabber oversaw a marketing team of more than 50 people. He has claimed credit for helping push daily trading volume from $300,000 to the mid-nine figures.
The board includes Coplan, Nick Tomaino, and Alex Spiro. The decision to part ways was partly shaped by the board’s push for a more polished image ahead of a possible IPO.
What this means for Polymarket and prediction markets
Removing a senior executive tied to questionable practices is a common first step in that cleanup. It shows the board is willing to act, even against an early insider close to the CEO.
The CFTC investigation remains a live risk.
Staged profit videos cut directly against user trust. They suggest an easier path to winnings than users may actually find.
Undisclosed paid promotion raises a parallel concern. Users scrolling social media had no way of knowing which enthusiastic posts were advertisements.
Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.