A group of crypto traders are planning to launch legal action against prediction platform Polymarket after its controversial $242 million Volodymyr Zelenskyy suit market concluded last night.
The resolution over “Will Zelenskyy wear a suit before July?” was disputed multiple times and eventually settled on “No” on Tuesday.
However, many onlookers and Polymarket users described the outcome as an example of “market manipulation” due to a small number of UMA token holders dictating the outcome of the bet — even if the conclusion was seen by many as being factually incorrect.
As a result, X user defipolice told Protos that he is reaching out to lawyers and discussing the possibility of legal action against Polymarket.
Read more: Polymarket suitgate: Zelenskyy’s NATO look divides crypto bettors
Defipolice reportedly lost roughly $30,000 on the bet and joins other users in the “PolyWhale Repellers” Discord that have drafted a settlement proposal accusing Polymarket of fraud.
Others are reaching out to the European Commission and various regional gambling authorities to highlight the market’s seemingly unfair conclusion.
Some X users even floated the idea of employing the services of Burwick Law, the crypto-focused litigation firm that may or may not have accidentally launched a memecoin.
No legal action is currently underway against Polymarket over its suit debacle, but based on discussions Defipolice has held with lawyers, they believe “we will win the legal side of things.”
They told Protos, “I wanted to be a little cautious on the legal side of things, but yeah, I am talking to a few lawyers.”
“It’s only been a few hours, so we’ll decide as a community what are the next steps,” they concluded.
Despite the backlash, Hart Lumbur, co-founder of UMA, the oracle system that underpins Polymarket, told WIRED yesterday that “There is no evidence of manipulation of UMA,” adding, “I really don’t like those meritless accusations.”
Lumbur added that he’s looking into making tweaks to the resolution process following the suit controversy.