Utah Files Criminal Charges Against Prediction Market Platform Kalshi and Its Two Co-Founders

深潮 TechFlow reported on October 29, citing CoinDesk, that Utah has filed criminal charges against prediction market platform Kalshi (KalshiEX LLC) and co-founders Tarek Mansour and Luana Lopes Lara, alleging illegal promotion of gambling in the state. Prosecutors filed 14 charges, including one felony count of alleged continuing criminal activity, 12 counts of promoting internet gambling, and one misdemeanor gambling count. The charges are based on evidence gathered by an undercover investigator from the Utah Attorney General's Office.

The investigator registered on the platform in September using a local address, phone number, and debit card, and placed 12 sports bets. A few days earlier, the Utah Attorney General had filed a civil lawsuit seeking to bar Kalshi from accepting bets from state residents and to recover profits it obtained in the state. Kalshi argues that its sports event contracts are financial derivatives regulated by the U.S. Commodity Futures Trading Commission (CFTC) and should not be subject to state gambling laws. The CFTC has sued Utah, stating that such contracts can only be regulated at the federal level.

Source: 深潮 TechFlow