Burwick Law Files Landmark Polymarket Lawsuit Over Alleged Wrongful Prediction Market Resolution
The lawsuit alleges Polymarket refused to pay traders who held "Yes" shares after the market's stated outcome was allegedly confirmed by Strategy's SEC filing.
NEW YORK — [7/6/2026] — Burwick Law has filed a landmark lawsuit against Polymarket and related defendants over an allegedly wrongful prediction market resolution.
The lawsuit, filed in the Supreme Court of the State of New York, County of New York, was brought on behalf of plaintiffs William Wood and Thomas Bush. The complaint alleges that Polymarket failed to properly resolve a market asking whether Strategy Inc., formerly MicroStrategy, sold any of its Bitcoin by May 31, 2026.
According to the complaint, the market rule stated that the market would resolve to “Yes” if MicroStrategy sold any of its Bitcoin by 11:59 p.m. ET on the date specified in the title. The complaint alleges that Strategy’s own SEC filing disclosed the sale of 32 Bitcoin during the relevant period, but Polymarket nevertheless resolved the market “No” after posting additional language that allegedly changed the resolution standard.
The complaint brings claims including breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment in the alternative, deceptive acts and practices, and false advertising. The plaintiffs seek damages, restitution in the alternative, statutory and treble damages where available, injunctive relief, interest, attorneys’ fees, and costs.
Burwick Law believes the case is among the first major lawsuits focused on prediction market accountability, market resolution procedures, and the legal rights of prediction market users.
Polymarket users, Kalshi users, and other prediction market traders who believe they were wronged can contact:
digitalassets@burwick.law
Attorney Advertising. Allegations in the complaint are allegations only. No court has determined liability. Prior results do not guarantee future outcomes.