Polymarket is now facing a lawsuit in New York over how it resolved the prediction market on whether Strategy, formerly MicroStrategy, would sell any Bitcoin before May 31, 2026. The contested contract asked that question directly, and the dispute centers on timing. Strategy later disclosed in a June 1 filing that it had sold 32 bitcoin for about $2.5 million between May 26 and May 31. Plaintiffs William Wood and Thomas Bush argue that this sale happened before the deadline, so holders of ‘Yes’ shares should have won. But Polymarket settled the market as ‘No,’ based on when the sale was publicly confirmed rather than when the sale itself took place.
The lawsuit alleges breach of contract, arguing that Polymarket effectively shifted the test from whether Strategy sold bitcoin in time to whether proof of that sale appeared in time. This is not framed as a broad challenge to prediction markets generally. It is a focused dispute over how contract terms and outcome evidence were interpreted when the underlying event and its public confirmation did not line up on the same date.
What happens next is Polymarket’s response in court and whether it defends its rules as applied. This case puts platform trust and market-resolution standards in the spotlight.