Polymarket fires chief marketing officer amid promotional practices investigation

Polymarket, a prediction market platform, has terminated the employment of its Chief Marketing Officer, Matthew Modabber, following an internal investigation into the company’s promotional tactics. 

The probe, which drew regulatory scrutiny and concerned investors, uncovered controversial marketing practices that prompted the leadership change. 

First reported by The New York Post, Modabber’s departure marks the end of his long-standing professional relationship with Polymarket’s founder and CEO, Shayne Coplan. Modabber was first hired in 2024 and was one of the company’s earliest executives. 

Currently, the company is reported to be finalising a separation agreement, although neither Polymarket nor Modabber have offered public statements regarding the dismissal.

Marketing tactics under review

The internal review focused on allegations that Polymarket employed staged betting videos, engaged social media influencers without sufficiently transparent disclosure, and presented simulated trades as though they represented actual customer gains. This was uncovered in a Wall Street Journal investigation earlier this year.

The investigation revealed that some online creators had posted videos falsely depicting customers winning approximately $1.9 million through the platform. These misleading videos formed part of a broader endeavour to attract new users to Polymarket’s services. 

Compliance questions come to the forefront

The probe extended beyond promotional content, with a Politico investigation indicating scrutiny over more than $2.5 million in payments routed via Modabber’s personal PayPal account to over 800 recipients between January 2025 and February 2026. 

Of this amount, at least $350,000 reportedly went to identified influencers, raising potential disclosure and compliance questions. Polymarket’s recent organisational shifts coincide with efforts to implement strengthened internal controls and enhance regulatory compliance.

The termination of Modabber raises questions on whether Polymarket has sought to burnish its image as part of initial steps to pursue an Initial Public Offering. Polymarket has not issued a public statement on any speculation regarding a potential IPO attempt.

Polymarket did not immediately respond to a request from iGB for comment.