Crypto World
CFTC Enforcement Division Issues Prediction Markets Advisory Following Kalshi Fraud Cases
TLDR:
- The CFTC issued a prediction markets advisory on February 25, 2026, following two Kalshi enforcement cases.
- A political candidate received a five-year Kalshi ban and a $2,246.36 penalty for trading on his own candidacy.
- A YouTube editor was fined $20,397.58 and suspended two years for trading on material nonpublic information.
- The CFTC confirmed full federal authority to prosecute fraud, insider trading, and manipulation on any DCM platform.
The CFTC Enforcement Division issued a prediction markets advisory on February 25, 2026. The advisory came after two enforcement cases surfaced involving fraudulent trading on KalshiEX, a Designated Contract Market.
Both cases involved misuse of nonpublic information on event contracts, also known as prediction markets. The CFTC used this opportunity to remind market participants that it holds full authority to prosecute illegal trading on any DCM, including Kalshi.
CFTC Confirms Full Authority Over Prediction Market Violations
The CFTC Enforcement Division made its position clear in the advisory released this week. While Kalshi handled both cases through its internal compliance program, the Division stressed it retains independent prosecutorial power.
The agency cited multiple sections of the Commodity Exchange Act to back its authority. This move signals that federal oversight of prediction markets is becoming more active.
The Division pointed to Section 6(c)(1) of the Act as the primary legal basis for action. Regulation 180.1(a)(1) and (3) also applies, covering manipulative schemes and fraudulent conduct.
The CFTC referenced prior enforcement actions, including CFTC v. Clark, to show its track record. These citations reinforce that prediction markets are not beyond the reach of federal law.
The advisory also addressed other prohibited practices beyond insider trading. These include pre-arranged trading, wash sales, and disruptive trading under Section 4c(a).
Fraud and manipulation under various sections of the Act were also listed. The CFTC made clear these rules apply to event contracts just as they do to traditional futures markets.
The Division further noted that DCMs carry an independent duty under Section 5(d) of the Act. This includes maintaining audit trails, conducting market surveillance, and enforcing rules.
The CFTC stated it will continue coordinating with exchanges on enforcement referrals where needed.
Two Kalshi Cases Prompted the CFTC Advisory
The first case involved a political candidate who traded on his own candidacy in May 2025. Social media videos surfaced showing the trades, prompting Kalshi’s compliance team to act immediately.
The trader admitted knowing the trades were improper under Kalshi’s rules. Kalshi imposed a $2,246.36 penalty and a five-year suspension from the exchange.
The CFTC noted this conduct potentially violated prohibitions on manipulative or deceptive trading practices. The candidate’s trades represented a direct conflict of interest with the outcome of the contract.
This type of self-interested trading threatens the integrity of prediction markets. The Division made clear it could have pursued this matter independently.
The second case involved a YouTube channel editor who traded between August and September 2025. The trader placed bets on a prediction market tied to the very channel where they worked.
Kalshi investigated the unusually profitable trades and discovered the employment connection. The trader likely accessed material nonpublic information through their editorial role before videos were published.
Kalshi imposed a $20,397.58 penalty, including $5,397.58 in disgorgement and a $15,000 fine. A two-year suspension from the exchange was also handed down.
The CFTC identified this as a potential misappropriation of confidential information in breach of a duty of trust. The Division’s advisory serves as a formal warning that such conduct on prediction markets carries serious federal consequences.
Ethereum co-founder Vitalik Buterin has added to a newly released roadmap outlining how Ethereum plans to dramatically speed up the production of new blocks and the confirmation of transactions.
Vitalik’s comments on Thursday offered more detail on a visual public roadmap called “Strawmap” released by the Ethereum Foundation’s Protocol team.
“Fast slots are off in their own lane at the top of the roadmap, and do not really seem to connect to anything,” said Buterin, noting that the rest of the roadmap is “pretty independent of the slot time.”
Slot time is the time it takes for Ethereum to produce new blocks, currently around 12 seconds. The roadmap aims to get this down to as fast as 2 seconds, so the blockchain feels more like a live, responsive system rather than something that has to be waited for.
“I expect that we’ll reduce slot time in an incremental fashion,” said Buterin, suggesting reductions following a roughly square-root-of-two formula from 12 seconds down through 8, 6, 4, and eventually as low as 2 seconds.
He also suggested that p2p improvements, or upgrades to how Ethereum nodes communicate with each other — such as sharing new blocks and data without the need to download repeated data — can greatly reduce block propagation time, “making shorter slots viable with no security tradeoffs.”
Finality from minutes to seconds
The second major improvement in the roadmap is to finality, or the point at which a transaction is mathematically guaranteed to be irreversible, which is currently around 16 minutes.
The future goal is finality between 6 and 16 seconds, achieved by replacing the current complicated confirmation system with a cleaner, simpler one that’s also quantum-resistant.
Related: Ethereum Foundation lists ‘quantum readiness,’ gas limits as 2026 priorities
“The goal is to decouple slots and finality, to allow us to reason about both separately,” explained Buterin.
He said this was a “very invasive set of changes,” so the plan is to bundle the largest step in each change with a “switch of the cryptography, notably to post-quantum hash-based signatures.”
Quantum resistance of slots before finality
Buterin said that a consequence of this approach would be quantum-resistant slots before finality.
“One interesting consequence of the incremental approach is that there is a pathway to making the slots quantum-resistant much sooner than making the finality quantum-resistant.”
The network might “quite quickly” get to a regime where, if quantum computers suddenly appear, “we lose the finality guarantee, but the chain keeps chugging along,” he said.
“Expect to see progressive decreases of both slot time and finality time,” Buterin summarized.
The “component-by-component replacement” of Ethereum’s slot structure and consensus will produce a “cleaner, simpler, quantum-resistant, prover-friendly, end-to-end formally-verified alternative.”
The timescale for these changes is over the next four years, with seven forks planned roughly every six months. Glamsterdam and Hegotá are already confirmed and slated for later this year.
Magazine: Bitcoin may take 7 years to upgrade to post-quantum: BIP-360 co-author
Forum Markets, formerly ETHZilla (EXCHANGE: ETHZ), unveiled a comprehensive rebranding on Wednesday that signals a strategic departure from a crypto-treasury play toward tokenizing real-world assets on-chain. The company said it will operate under the Forum brand and will begin trading as FRMM (EXCHANGE: FRMM) once Nasdaq approves the ticker switch for market open next week. The move reflects a broader shift in the market as investors weigh the sustainability of crypto-backed balance sheets against regulated infrastructure that can support asset tokenization, governance transparency, and scalable on-chain settlement. The leadership frames the pivot as a move toward institutional-grade, on-chain products backed by real assets, governed by transparency, and delivered through regulated infrastructure.
The stock reaction on Wednesday offered a snapshot of investor sentiment: ETHZilla shares rose about 13% to close near $3.91, a move that underscored either relief or curiosity about the pivot. After-hours trading remained flat relative to the day’s close, signaling cautious enthusiasm rather than a sustained breakout. Year-to-date, the stock has fallen more than 20%, mirroring a broader rout in assets tied to digital markets and a disconnect between crypto prices and traditional equities.
The company’s evolution traces back to a bold bet on ether and tokenized assets. The entity originally acquired Ether (CRYPTO: ETH) holdings after extending its biotech roots into the crypto space around mid-2025. The strategy later evolved toward tokenized real assets, with a notable pivot announced in December to bring real-world assets on-chain through tokenization rather than maintaining a crypto-heavy treasury alone. This pivot laid the groundwork for tangible experiments in asset-backed tokenization, including ventures into tokenized aircraft assets.
Among the notable initiatives is Eurus Aero Token I, a token tied to two commercial jet engines leased to a major U.S. carrier. The engines are among the first tangible asset classes on Forum’s radar as it builds a platform intended to connect real-world assets with on-chain representation. The approach seeks to marry investor access to physical assets with the efficiency and transparency of blockchain-based issuance and settlement. The move also includes expanding the company’s asset register, with Ether holdings forming a historical base for its capitalization strategy and governance framework.
Industry observers have noted that the crypto-treasury concept, once a darling of speculative investors, has faced headwinds amid a broader downturn in crypto markets. As a result, Forum’s rebranding appears part of a larger trend toward tokenization firms seeking regulated, asset-backed exposure rather than concentrated bets on cryptocurrency prices. The strategy also aligns with market demand for governance structures and regulatory-compliant pathways to on-chain asset ownership, which could appeal to institutional participants wary of crypto volatility while still seeking on-chain liquidity and transparency.
The story of ETHZilla’s evolution—from biotech–crypto hybrid to a tokenization-focused platform—also reflects how market perception has shifted since the height of the crypto treasury trend. The company’s investor base has included notable names such as Peter Thiel’s Founders Fund, which had taken a stake in ETHZilla but subsequently exited amid the sector-wide reevaluation of crypto treasury holdings. That exit underscores the risk-reward calculus now guiding capital toward on-chain representations of real assets rather than pure crypto holdings.
As Forum Markets advances, the road ahead will hinge on regulatory clarity, Nasdaq’s approval of the FRMM ticker, and the platform’s ability to demonstrate scalable integrations with traditional financial markets. The company’s financials, asset mix, and partnerships will be closely watched for signs that tokenization can deliver predictable income streams and governance that investors can rely on within a regulated context. The pivot is ambitious, but it sits at the nexus of what many see as the future of capital markets: on-chain, asset-backed, and governed by transparent rules.
Key takeaways
- The rebrand marks a strategic shift from a crypto-treasury approach to a tokenization-focused platform aiming to connect traditional capital markets with blockchain-backed real assets.
- Forum Markets will trade under FRMM after Nasdaq approval, reflecting the company’s transition to a regulated, asset-backed model rather than a pure crypto-positioning strategy.
- Investor reaction was positive in the short term, with ETHZilla’s shares rising about 13% on the news, though the year-to-date performance remains negative amid broader crypto market volatility.
- The pivot encompasses tangible asset ventures, including Eurus Aero Token I tied to two jet engines leased to a U.S. air carrier, illustrating the real-world use case the company envisions for on-chain tokenization.
- Past investor dynamics—such as the exit of notable backers like Founders Fund—highlight evolving risk assessments as markets shift toward regulated asset-backed on-chain structures.
Tickers mentioned: $ETH, $FRMM, $ETHZ
Sentiment: Neutral
Price impact: Positive. The rebrand news drove ETHZilla shares up about 13% intraday, signaling initial investor optimism about the strategic pivot.
Market context: The move comes as crypto equities face volatility and a broader reassessment of crypto-treasury strategies, with a growing interest in tokenization of real-world assets as a potential hedge against crypto price swings and as a path to regulated, on-chain liquidity.
Why it matters
The Forum Markets transformation is significant because it signals a broader shift in how market participants view on-chain access to real assets. Tokenization promises to unlock liquidity for otherwise illiquid assets, provided there is a robust governance and regulatory framework. If Forum can demonstrate scale, transparent custody, and reliable on-chain settlement for assets like engines or other tangible collateral, it could provide a template for other asset-backed token offerings, attracting institutional capital that has remained cautious about direct crypto exposure.
The narrative around real-world asset (RWA) tokenization is gaining traction as a way to marry the efficiency and transparency of blockchain with the familiar governance structures of traditional markets. Forum’s emphasis on regulated infrastructure and on-chain governance aims to address concerns about custody, valuation, and compliance that have historically limited institutional participation in tokenized assets. While the path to broad adoption remains uncertain, the company’s approach aligns with investor interest in assets that combine on-chain accessibility with real-world collateral and governed frameworks.
On a practical level, the Jet Engine token and other RWAs under development could serve as early proofs of concept for what tokenized asset markets can look like in the near term. However, the sector’s success will depend on regulatory clarity, the demonstration of credible risk controls, and the ability to deliver consistent, scalable tokenization that adheres to traditional financial standards. Forum’s leadership has framed the pivot as a deliberate move to build institutional-grade products, which could attract larger clients if the platform proves capable of meeting stringent due diligence and reporting requirements.
What to watch next
- Nasdaq approval and the market open date for the FRMM ticker, signaling the formal transition to Forum Markets’ new branding and platform focus.
- Progress and governance milestones around Eurus Aero Token I and other RWAs, including third-party audits and asset-backed valuation disclosures.
- Updates on partnerships or client onboarding that demonstrate real-world use cases for tokenized assets within regulated ecosystems.
- Regulatory developments related to tokenized assets and on-chain infrastructure that could impact custody, settlement, and reporting requirements.
- Subsequent trading performance of FRMM and any material changes in the company’s asset mix or financing structure.
Sources & verification
- Official press release announcing ETHZilla’s rename to Forum Markets and the FRMM ticker transition.
- Details on Eurus Aero Token I and the tokenization of two commercial jet engines.
- CoinGecko data on ETH holdings and ETHZilla’s ranking as a corporate holder of Ether.
- Cointelegraph coverage of ETHZilla’s pivot, including discussions of Founders Fund’s stake adjustments.
- Public market data showing Wednesday’s stock move to about $3.91 and after-hours trading behavior.
What the story means for investors and the market
Forum Markets’ rebranding to FRMM and its pivot toward real-world asset tokenization could shape how investors assess crypto-linked equities. If the company can demonstrate credible asset backing, regulatory compliance, and scalable on-chain processes, it may attract institutional participants seeking regulated exposure to tokenized assets rather than pure crypto bets. The path requires navigating the complexities of asset valuation, custody, and governance, but the potential payoff—broader market liquidity for tangible assets via on-chain tools—could be meaningful for the trajectory of tokenization across traditional markets.
What to watch next
- Nasdaq approval and FRMM trading start date
- Progress on Eurus Aero Token I and other RWAs
- Regulatory guidance impacting on-chain asset tokenization
- Institutional partnerships and asset pipelines announced by Forum
TLDR
- 21Shares has listed the STRC ETP on Euronext Amsterdam under the ticker STRC NA.
- The product gives European investors exposure to Strategy’s preferred stock linked to its Bitcoin treasury.
- Strategy currently holds 717,722 BTC valued at about $47 billion dollars.
- The preferred stock offers a variable dividend set at an annualized rate of 11.25%.
- 21Shares designed the ETP to allow access through standard brokerage accounts.
21Shares has launched a new exchange-traded product that gives European investors exposure to Strategy’s preferred stock. The product trades under the ticker STRC NA on Euronext Amsterdam. The listing expands access to Strategy’s Bitcoin-backed yield structure through a regulated exchange vehicle.
The company will list the 21Shares Strategy Yield ETP on Thursday. It will offer both institutional and retail investors access through standard brokerage accounts.
21Shares structured the product to track Strategy’s Variable Rate Series A Perpetual “Stretch” Preferred Stock. The firm designed the wrapper to simplify access to the underlying preferred shares.
Strategy holds 717,722 BTC in its corporate treasury. The holdings carry a market value of about $47 billion.
The preferred stock offers a variable dividend set at an annualized rate of 11.25%. The dividend links to Strategy’s Bitcoin treasury operations.
21Shares said the ETP acts as a cash-flow bridge between traditional finance and digital assets. The firm aims to combine equity exposure with crypto-linked yield.
Strategy, STRC ETP Expands Bitcoin-Linked Equity Access
21Shares confirmed that the STRC ETP provides exposure to Strategy’s preferred equity rather than direct Bitcoin ownership. The product references the same income stream tied to Strategy’s Bitcoin reserves. However, investors access it through an exchange-traded structure. The listing takes place on Euronext Amsterdam under the ticker STRC NA.
The company stated that the structure removes the need to purchase the preferred shares directly. As a result, investors can trade the instrument through conventional brokerage platforms. The firm said the wrapper increases operational ease for European market participants. It also aligns the product with existing exchange standards.
21Shares President Duncan Moir addressed the launch in a company statement. He said, “By combining high income potential with a familiar exchange-traded structure, STRC offers both institutional and retail investors an efficient and accessible way to add yield to their portfolios.”
Moir added that the product marks the company’s first equity-linked instrument. He said it extends the firm’s digital asset expertise into equity exposure tied to the Bitcoin ecosystem.
21Shares Broadens Product Suite Across Europe and the US
21Shares has operated since 2018 and manages about $5.3 billion in assets. The firm oversees 60 ETPs listed across 13 exchanges as of Monday.
The company continues to expand its global footprint through new listings. It launched the 21Shares Spot SUI ETF under the ticker TSUI on Nasdaq this week.
The new US listing follows a series of recent exchange-traded launches. The firm has focused on regulated crypto-linked products for institutional and retail investors.
21Shares described the Strategy yield product as part of its broader access strategy. The company said it seeks to provide straightforward exposure to digital asset markets.
Moir stated, “Since our inception, we have focused on providing straightforward access to digital assets.” He added that the new product extends that approach into equity-linked exposure tied to Strategy’s Bitcoin treasury.
TLDR:
- Bitcoin faces continued structural pressure amid inactive stablecoin liquidity.
- Stablecoin Supply Ratio shows negative readings across short, medium, and long-term oscillators.
- Price rebounds struggle as capital remains in stablecoins instead of spot exposure.
- Market shift depends on renewed stablecoin demand, not short-term price momentum.
Bitcoin continues to trade under structural pressure, with the Stablecoin Supply Ratio (SSR) remaining negative across 90-day, 200-day, and 365-day oscillators.
Following a peak above $120,000 mid-year, Bitcoin’s price shifted from expansion to contraction, producing successive lower highs into late Q4 and early Q1.
The break below the zero line signaled a structural change in liquidity, reflecting deeper market conditions rather than temporary fluctuations.
Stablecoin Supply Remains Dormant Despite Available Capital
A compressed SSR indicates that stablecoin supply is large compared to Bitcoin’s market capitalization. During expansion phases, rising oscillator readings signal capital moving from stablecoins into Bitcoin, supporting upward momentum.
Currently, stablecoin liquidity exists but remains largely inactive, failing to convert into spot exposure.
The negative SSR across all timeframes suggests that defensive positioning dominates the market. Investors appear hesitant, even as substantial capital remains ready to deploy.
Source: Cryptoquant
This creates a divergence where available liquidity does not translate into buying pressure or price support.
Earlier in the year, positive oscillator readings correlated with strong price structure and controlled volatility. Sustained upside movement occurred as stablecoin demand actively entered Bitcoin, reinforcing momentum. The current absence of such behavior demonstrates passive liquidity conditions.
Downside Volatility Persists Amid Limited Demand
Following the rollover of SSR readings across short, medium, and long-term oscillators, downside volatility has increased.
Price rebounds have lacked follow-through, reflecting insufficient absorption of supply during corrective phases. This trend shows that market participants are not actively deploying stablecoin capital to stabilize Bitcoin.
Historical on-chain data shows extended negative SSR regimes often precede larger inflection points. However, confirmation requires changes in investor behavior and renewed stablecoin deployment.
Without this, the market may continue under structural pressure, as liquidity remains passive despite readiness.
Market observers note that the next meaningful shift in Bitcoin will likely coincide with renewed stablecoin demand rather than purely price-driven momentum.
The system’s current configuration emphasizes the need for capital rotation to support price recovery. Recent market commentary also reflects the cautious stance of investors waiting for clearer signals.
The International Monetary Fund said Wednesday that US inflation will not return to the Federal Reserve’s 2% target until early 2027.
The assessment, part of the IMF’s first Article IV review of the Trump administration, signals that meaningful rate relief remains distant despite the president’s optimism.
IMF Flags Fiscal Risks
IMF Managing Director Kristalina Georgieva told reporters the US current account deficit is “too big.” The Fund estimates it at 3.5% to 4% of GDP in the near term.
But the IMF’s prescription clashes with the administration’s approach. Nigel Chalk, the Fund’s Western Hemisphere Director, said fiscal consolidation — not tariffs — is the best path to narrowing the deficit. The recommendation comes after the Supreme Court struck down Trump’s broad emergency tariffs as illegal, forcing the administration to invoke Section 122 of the Trade Act of 1974 for replacement levies.
The fiscal picture is stark. The IMF projects US federal deficits will remain between 7% and 8% of GDP in the coming years. That is more than double the levels targeted by Treasury Secretary Scott Bessent. Consolidated government debt is on track to reach 140% of GDP by 2031.
“The upward path for the public debt-GDP ratio and increasing levels of short-term debt-GDP represent a growing stability risk to the US and global economy,” the Fund warned.
Trump’s Rate Optimism vs. Structural Reality
The IMF review landed one day after Trump’s State of the Union address, where the president painted a rosy picture on borrowing costs. He claimed mortgage rates had hit four-year lows and that annual mortgage costs had dropped nearly $5,000 since he took office. He framed lower rates as the solution to what he called the “Biden-created housing problem.”
Yet the IMF’s numbers tell a different story. With inflation not reaching the Fed’s target until 2027 and fiscal deficits running at twice the administration’s own goals, the structural case for higher-for-longer rates is strengthening. The Fund pegged 2026 US growth at a resilient 2.4%, leaving the Fed little urgency to ease.
What It Means for Crypto
The implications for risk assets are clear. Sticky inflation and an expanding fiscal deficit reduce the probability of aggressive rate cuts this year. For crypto markets, which rallied on rate-cut expectations through late 2025, the IMF’s assessment reinforces caution.
The deeper irony is that the administration’s own fiscal expansion — including what the IMF notes are historically large tax cuts — is the primary driver of the deficit that keeps rates elevated. Trump wants lower rates but is pursuing policies that structurally prevent them.
The IMF stopped short of predicting a crisis, noting that “the risk of sovereign stress in the US is low.” But the trajectory it describes — rising debt, persistent deficits, delayed disinflation — points to an environment where rate relief comes slowly, if at all.
TLDR
- t54 Labs raised 5 million dollars in a seed funding round co-led by Franklin Templeton and Ripple.
- The company builds identity and risk tools for autonomous agents that conduct financial transactions.
- Anagram and PL Capital joined the round along with several crypto-focused investors.
- t54 operates on networks including XRP Ledger, Solana, and Base.
- The startup plans to hire engineers and a developer relations lead to expand its platform.
t54 Labs has secured $5 million in seed funding to build a trust layer for agentic finance. Anagram, PL Capital, and Franklin Templeton co-led the round with support from Ripple and others. Founder Chandler Fang confirmed the raise and outlined plans to expand infrastructure and hiring.
The San Francisco-based startup launched in January 2025 and focuses on identity and compliance tools for autonomous agents. Fang said no investor received board or advisory seats in the round. He declined to share the valuation or timeline details.
Franklin Templeton and Ripple Back t54’s Seed Financing
Anagram and PL Capital co-led the seed round alongside Franklin Templeton. Ripple, Virtuals Ventures, Blockchain Coinvestors, and ABCDE also participated in the financing. Fang described the raise as the company’s first external funding round.
Fang said t54 employs 12 staff members and plans new hires. The company will add two full-time engineers and one developer relations or business development lead. These hires will support product development and institutional partnerships.
Tony Pecore from Franklin Templeton addressed the investment in a statement. He said, “t54 is building the trust and verification framework that institutional finance will require.” He added that institutions need infrastructure as autonomous agents enter financial markets.
Fang stated that no investor secured governance rights in the company. He confirmed that the round structure remains undisclosed. He also declined to comment on valuation metrics.
Platform Targets Identity, Risk, and Credit for Autonomous Agents
t54 builds tools that verify and monitor AI agents conducting financial transactions. Fang said agents lack standardized identity checks and risk controls. He explained that businesses need accountability when autonomous systems move funds.
The platform includes four core components that address these gaps. It offers identity verification under a system called “know your agent.” It also runs a real-time risk engine that flags suspicious activity before settlement.
The company plans to extend credit lines to verified agents. Credit decisions will rely on identity records, risk scores, and transaction history. The system also combines identity, risk controls, and settlement in one interface.
Fang said, “We’re building the full trust stack that lets businesses hand financial operations to autonomous agents.”
He added that blockchain serves as a settlement and accountability layer. The infrastructure operates across multiple payment rails.
t54 currently runs on the XRP Ledger, Solana, and Base networks. The company also created x402-secure for the Coinbase-incubated x402 agent payment protocol. Last month, Evernorth announced plans to integrate t54’s tools into its XRP Ledger treasury operations.
Evernorth aims to raise over $1 billion for institutional XRP holdings. Under the partnership, Evernorth will use t54 infrastructure for autonomous treasury management. Fang said the collaboration expands institutional deployment of the platform.
A former contender for governor of California has been banned from Kalshi after betting on his own candidacy last year in violation of insider trading rules, the prediction market platform said on Wednesday.
According to a statement from Kalshi’s head of enforcement, Robert DeNault, the politician bet about $200 on his candidacy for governor of California and posted about it on X, leading to a five-year suspension on the prediction market platform and a $2,000 penalty.
Kalshi did not name the politician, but said he is no longer running for governor and is now running for Congress.
The description appears to fit Kyle Langford, a former Republican turned Democrat who is now running for election to the US House to represent California’s 26th Congressional District.
In an X post published on May 25, 2025, Langford shared a video of himself placing a $98.76 bet on Kalshi, wagering that he would win.
Kalshi said the account did not withdraw any profits and that the case was reported to the CFTC.
Cointelegraph reached out to Langford for further comment but didn’t receive an immediate response.
Meanwhile, Kalshi said it also handed out penalties to a YouTube editor who traded about $4,000 on YouTube stream markets between August and September 2025 — also violating Kalshi’s insider trading rules, resulting in a two-year penalty and a roughly $20,000 fine.
“Our surveillance systems flagged his near-perfect trading success on markets with low odds, which were statistically anomalous,” said Kalshi, which, with the help of other traders on the platform, identified where he worked and concluded that he likely had access to material non-public information.
While Kalshi didn’t name the YouTube editor, mainstream media have widely reported that the editor is Artem Kaptur, an employee of the popular YouTuber MrBeast.
Kalshi, a Commodity Futures Trading Commission-regulated platform, said it has investigated 200 cases and frozen several flagged accounts. It has more than a dozen active cases.
Earlier this month, Kalshi strengthened its surveillance efforts by establishing a surveillance audit committee and partnering with crypto trading surveillance platform Solidus Labs to “detect, investigate, and address market abuse.”
Those efforts come in response to an uptick in regulatory scrutiny of prediction markets as they enter the mainstream.
US lawmakers introduced a bill last month to restrict trading by government insiders after one Polymarket user made over $400,000 on bets tied to Venezuelan President Nicolás Maduro, placing wagers hours before US forces captured him in Caracas.
CFTC sends strong warning to future violators
On Thursday, CFTC Chair Mike Selig said the agency established a prediction markets advisory to collaborate with industry participants in efforts to catch insider traders.
Related: Polymarket users favor Meteora in bets over ZachXBT crypto takedown
Selig warned that those engaging in insider trading will face consequences:
“Let me be clear: if you attempt to engage in manipulation, fraud, or insider trading, we will find you and take action.”
Magazine: Did a Hong Kong fund kill Bitcoin? Bithumb’s ‘phantom’ BTC: Asia Express
Matt Western, chair of the UK’s Joint Committee on National Security Strategy, has urged the government to put a temporary halt on crypto donations to political parties, citing concerns over foreign interference.
In his Monday letter to Steve Reed, Secretary of State for Housing, Communities and Local Government, Western recommended adding a “temporary moratorium” on crypto donations to the upcoming Representation of the People Bill. The moratorium would be lifted once the Electoral Commission issues statutory guidance.
“We are concerned that foreign state intent to interfere in UK political finance may grow out to the next election,” Western said.
“As the security environment worsens and the UK’s military role in Europe grows, the value of influencing the UK’s political positions, for example on Ukraine, or US/EU relations, is likely to increase,” he added.
In January, a group of MPs who chair parliamentary committees — including Western — advocated for a full ban on crypto donations to be included in the Representation of the People Bill, warning that foreign states could use such payments to influence UK politics. However, the bill didn’t include a full ban when it was introduced to the House of Commons on Feb. 12.
Ban funds from crypto mixers and anonymous sources
Western argued that the Electoral Commission’s guidance should require political parties to use only crypto services registered with the Financial Conduct Authority, the UK’s financial services regulator.
Donations that involve the upstream use of mixers or come from an unknown source should be prohibited, according to Western, and political parties that receive crypto should convert it to fiat within 48 hours of receipt.
The next general election in the UK must be held by Aug. 15, 2029. Meanwhile, the Representation of the People Bill is scheduled to have a second reading in the House of Commons on March 2.
National police force needed to tackle foreign interference
Western’s letter also offers longer-term solutions, such as creating a national police force dedicated to overseeing political finance and combating foreign interference.
“Our evidence suggests that there is no clear national enforcement lead for political finance and foreign interference risk. Responsibilities are split across the Electoral Commission, the Metropolitan Police Service, Counter-Terror Policing, the National Crime Agency, MI5 and local police forces,” he said.
Related: Revolut among 4 companies chosen to test stablecoins in UK sandbox
Western also recommended source-of-wealth checks for donors, a review of sentencing for electoral finance offenses, higher penalties for breaches and enhanced powers for the Electoral Commission to compel institutions to disclose the sources of donation funds.
Reform UK became the first party to accept crypto donations in May last year, with leader Nigel Farage announcing at the Bitcoin 2025 conference in Las Vegas that the group is accepting Bitcoin (BTC) and other cryptocurrency contributions from eligible donors.
Magazine: Clarity Act risks repeat of Europe’s mistakes, crypto lawyer warns
ETHZilla shares climbed 13% on Wednesday after the company changed its name to Forum as part of plans to ditch its crypto treasury strategy and become a tokenization company.
The company said on Wednesday that it has updated its corporate name and brand to Forum Markets and will do business as Forum. ETHZilla will also change its ticker symbol to “FRMM” as of market open on Monday, pending Nasdaq approval.
The company said the rebrand is the next step in its transition into a platform “connecting traditional capital markets with blockchain-based financial infrastructure.”
“Forum embodies our belief that the next generation of financial markets will be built around institutional-grade, on-chain products backed by real assets, governed by transparency, and delivered through regulated infrastructure,” said the company chair and CEO, McAndrew Rudisill.
ETHZilla shares climb 13% on rebrand
Shares in ETHZilla (ETHZ) ended trading on Wednesday up more than 13% to $3.91 and have traded flat after hours, recovering from a slight dip.
Its stock is down over 20% so far this year as a wide crypto market rout has hit stocks tied to digital assets.
ETHZilla was a biotech company called 180 Life Sciences that adopted the ETHZilla brand and started buying and holding Ether (ETH) in July 2025 amid peak hype around crypto treasury companies.
Related: Peter Thiel’s Founders Fund dumps ETHZilla stake as ETH treasuries face pressure
Its crypto treasury pivot sent its shares soaring to a multi-year high of $107 by August, as ETH climbed to just under $4,950 around the same time, but a crypto market rout has since decimated its share price, along with those of its crypto-buying rivals.
As Wall Street largely moved on from crypto treasuries and began to back tokenization firms, Rudisill announced in December that ETHZilla would pivot to bringing “real-world assets (RWA) on-chain through tokenization.”
The company has purchased two commercial jet engines leased to what it said is a “leading US air carrier,” and began offering a token tied to the engines earlier this month called Eurus Aero Token I.
ETHZilla currently holds 69,802 ETH worth $143.7 million at the cryptocurrency’s current price of $2,060, making it the seventh-largest corporate holder of the asset, per CoinGecko.
Magazine: Bitcoin’s ‘biggest bull catalyst’ would be Saylor’s liquidation — Santiment founder
TLDR
- Circle reported a 77% increase in total revenue and reserve income for Q4 2025.
- Circle generated $770 million in revenue, including $733 million in reserve income.
- USDC circulation reached $75.3 billion, rising 72% year over year.
- On-chain transaction volume hit $11.9 trillion in Q4, up 247% from last year.
- Circle posted $133 million in net income and $167 million in adjusted EBITDA.
Circle reported a 77% year over year increase in total revenue and reserve income for the fourth quarter of 2025. The company linked the growth to higher USDC circulation and reserve income. The latest figures outline a widening scale gap between USDC and Ripple’s RLUSD.
Circle Reports Revenue Surge as USDC Circulation Expands
Circle posted $770 million in total revenue and reserve income for Q4 2025. The company generated $733 million of that figure from reserve income.
Reserve income rose 69% from the previous year. Average USDC circulation expanded 100% during the same period.
USDC closed 2025 with $75.3 billion in circulation. That figure marked a 72% increase year over year.
Circle recorded $11.9 trillion in on-chain transaction volume during the fourth quarter. The volume represented a 247% increase from a year earlier.
The reserve yield declined to 3.8% during the quarter. The yield fell by 68 basis points compared with last year.
Revenue less distribution costs increased 136% to $309 million. Circle reported a margin of 40% for the period.
Net income from continuing operations reached $133 million. Adjusted EBITDA rose 412% to $167 million.
Circle stated that higher circulation supported reserve balances and interest income. The company attributed revenue growth to expanded USDC usage.
RLUSD Operates from Smaller Base in Stablecoin Market
Ripple’s RLUSD holds a market capitalization of nearly $1.56 billion. Daily trading volume stands around $124 million.
The supply gap between USDC and RLUSD shapes reserve income capacity. Larger circulation allows higher reserve balances and interest earnings.
Ripple remains privately held and does not publish detailed quarterly financial statements. As a result, direct profitability comparisons remain limited.
RLUSD benefits from Ripple’s global payments network and exchange integrations. However, public data shows a lower circulation base.
USDC’s market capitalization stands at $74.9 billion. That scale exceeds RLUSD by a wide margin.
Circle’s reported earnings provide measurable data on reserve income and operating performance. Ripple has not released comparable quarterly metrics for RLUSD.
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