Woofun AI reports that two plaintiffs have filed a lawsuit against Polymarket, alleging breach of contract and deceptive practices regarding a prediction market on Strategy's Bitcoin holdings. The complaint, filed in New York State Supreme Court, names Polymarket, CEO Shayne Coplan, and CMO Matthew Modabber as defendants.

The plaintiffs held "Yes" positions on whether Strategy would sell any Bitcoin by May 31st. Although Strategy filed an SEC Form 8-K confirming the sale of 32 BTC between May 26th and 31st, Polymarket settled the market as "No." Plaintiffs claim the platform altered the settlement criteria to require public confirmation by the deadline, leading to a "No" resolution via UMA vote on June 3rd.