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- Polymarket dismissed marketing chief Matthew Modabber following an internal investigation.
- The internal review examined concerns regarding marketing practices and staged promotional content.
- NACA filed a lawsuit alleging deceptive promotional campaigns by Polymarket.
Polymarket fired marketing chief Matthew Modabber after an internal investigation. The reported departure follows scrutiny of the company’s promotional practices.
Polymarket Finalized Separation Agreement
The investigation began earlier this year after incidents that concerned investors. Modabber had served as chief marketing officer since January 2024.
Polymarket declined to comment and Modabber did not respond to its request. One person familiar with the matter said the parties were finalizing a separation agreement.
The review is linked to concerns about marketing activity, including allegations involving staged promotional content. Polymarket has not publicly released the investigation’s conclusions or identified a replacement for Modabber.
Consumer Lawsuit Alleges Deceptive Promotional Campaigns
The National Association of Consumer Advocates (NACA) filed a separate lawsuit on June 26 against Polymarket-related companies, Chief Executive Shayne Coplan and Modabber. Its lawyers at Vaca Daffan brought the complaint in the Superior Court of the District of Columbia.
The complaint alleges that paid influencers promoted Polymarket without adequately disclosing their financial relationship with the company and depicted fabricated bets on a simulated platform. NACA also alleges that a paid “clipping” operation distributed shorter versions of those videos, compensating participants based on views while making advertisements appear to be ordinary social media posts.
NACA alleges that the videos presented creators’ apparent trading success as representative of typical customer outcomes. It argues that the campaigns misrepresented profit prospects and unfairly targeted college-age consumers. These remain allegations, rather than judicial findings.
The organization asks the court to prohibit the alleged practices, order restitution for affected District of Columbia consumers and require the return of allegedly unlawful profits. The case is a public-interest enforcement action, rather than a proposed class action.
Polymarket previously said it would audit active promotional content for compliance with its standards and disclosure requirements. No connection between the lawsuit and the dismissal has been confirmed.
