Crypto World
Telegram’s Durov Warns About Spain’s Online Age-Verification Law
Pavel Durov, the co-founder of Telegram, has sharpened his critique of Spain’s proposed online age-verification regime, warning that a policy aimed at shielding minors could usher in broader censorship and government-led surveillance. The plan — which seeks to require platforms to verify users’ ages and potentially restrict access for those under 16 — follows similar moves in other European jurisdictions and was publicly unveiled as Spain’s government positioned itself at the forefront of a continent-wide push toward digital identity controls. Durov, documenting his stance on Telegram, stressed that the measures risk de-anonymizing users and empowering authorities to police online speech. The discourse arrives amid a broader debate about privacy, safety, and how to balance child protection with civil liberties.
“Pedro Sánchez’s government is pushing dangerous new regulations that threaten your internet freedoms. Announced just yesterday, these measures could turn Spain into a surveillance state under the guise of ‘protection.’”
Spain’s prime minister, Pedro Sánchez, announced on Tuesday that the country will enact online age-verification policies similar to those deployed in other parts of Europe, including the United Kingdom. Speaking at the World Governments Summit in Dubai, Sánchez framed the move as a necessary step to “protect our children,” asserting that social networks have become a “failed state” in need of stronger oversight. The remarks signaled a broader push within Spain to merge child-protection initiatives with stricter digital-identity requirements, potentially affecting how minors access social platforms.

Yet the policy has sparked a wave of pushback from privacy advocates and cyber-activists who argue that the approach sacrifices fundamental freedoms in the name of protection. Critics contend that age verification, as currently imagined, could chill speech and widen government control over what people can see, say, and share online. The debate touches on broader issues of digital identity, privacy, and the role of state power in policing online spaces — questions that increasingly draw the attention of crypto-focused communities and privacy-centered technologists alike.
In the wake of Sánchez’s announcement, privacy advocates and technologists have argued that current-age-verification techniques are imperfect and prone to circumvention. Some have pointed to the growing use of virtual private networks (VPNs) as a practical workaround, raising concerns about the efficacy and fairness of blanket age restrictions. A more constructive line of critique has emerged from industry voices who say that cryptographic identity systems could offer a path forward — proving that a person is adult or that they meet certain criteria without exposing their private data to platforms or third parties.
“You want to control people who expose the corruption in your government,” a user named Campari quipped in a social post reacting to the proposal. The discourse has drawn remarks from prominent tech figures, including billionaire Elon Musk, who criticized the approach, and journalists who urged vigilance against policies that may curtail online expression. The conversation underscores a broader concern: that well-intentioned child-safety measures could be repurposed to justify more aggressive surveillance regimes and content moderation powered by state actors.
Critics also highlight that age-verification efforts should be designed with privacy-by-default principles. As one blockchain executive noted, the current methods can be counterproductive because they push users toward opaque and less secure means of identity verification, which could expose them to data leaks or misuse. The same voices emphasize that cryptographic identity tools — if implemented properly — could allow individuals to demonstrate age or eligibility without revealing sensitive details such as birthdates or real names, thereby preserving user anonymity where appropriate while maintaining safety guarantees.
The debate in Spain mirrors related conversations across Europe and beyond about how to reconcile child-protection goals with the right to privacy on open networks. In the United Kingdom, for instance, officials have discussed similar restrictions aimed at younger users and the sharing of age-related data online. The evolving policy landscape is prompting technologists to explore privacy-preserving identity mechanisms, including self-sovereign identity concepts and blockchain-enabled proofs of age — approaches that could potentially harmonize safety with civil liberties if implemented with robust governance and privacy protections.
As policymakers weigh the practicalities of such systems, industry leaders caution that the success or failure of Spain’s program will hinge on whether verification methods can be both secure and privacy-preserving, while not creating barriers to legitimate online participation. The conversation extends to the crypto ecosystem, where debates over identity, data minimization, and user autonomy have gained renewed attention in recent years. In this context, the call for cryptographic identity management is less about creating new cryptographic gimmicks and more about aligning digital rights with real-world protections in an increasingly digital society.
In the immediate term, observers are watching for concrete legislative steps, timelines, and the scope of application — including whether the policies would apply to all social platforms or be tailored to certain categories of services. The policy’s implementation could set a precedent for other jurisdictions grappling with similar questions, potentially influencing how digital identity is constructed and regulated across borders.
Why it matters
The Spain debate sits at a critical crossroads for the digital age: the tension between safeguarding minors online and protecting civil liberties. How a government implements age verification can shape public discourse, influence platform behavior, and redefine the boundaries of privacy in an era where data is a core asset. For users and investors across cyber and crypto spaces, the policy highlights the need for privacy-preserving technologies that can simultaneously enable safety, transparency, and trust online. If Spain moves ahead with robust safeguards that respect user anonymity while preventing exploitation, it could accelerate adoption of privacy-centric identity solutions elsewhere. If, on the other hand, the design proves heavy-handed or opaque, it could catalyze calls for greater decentralization of identity management and more resilient tools for users who value privacy.
For builders in the crypto and Web3 space, the episode underscores the potential role of decentralized identity and cryptographic proofs as viable alternatives to centralized verification schemes. It also raises questions about regulatory divergency within Europe, the integration of identity standards across platforms, and the incentives governments may create for developers to design privacy-first solutions. In short, the Spain policy could become a touchstone for how digital identity is conceived, implemented, and governed in a privacy-conscious era.
What to watch next
- Timeline and wording of the proposed legislation in Spain, including which platforms and services would be affected and what verification methods would be allowed.
- Responses from privacy authorities, civil-society groups, and technology companies, including potential legal challenges or amendments.
- Developments in privacy-preserving identity technologies, including any pilot programs or collaborations with crypto-native projects.
- The UK and other European jurisdictions’ actions on under-16 access and online identification, and how those policies interact with Spain’s proposal.
- Any formal documentation outlining data-handling, opt-out provisions, and data-minimization requirements for verification data.
Sources & verification
- Pavel Durov’s post on Telegram detailing concerns about Spain’s age-verification push and potential privacy implications.
- Pedro Sánchez’s remarks at the World Governments Summit in Dubai announcing Spain’s plan to enact online age verification policies.
- Cointelegraph coverage (Spain ban social media minors security) referencing the policy’s public rollout and government stance.
- Articles and resources on digital identity management and privacy-preserving verification methods, including discussions on cryptographic proofs of age.
- Related discussions about under-16 social-media restrictions in the UK and ongoing identity debates in Europe.
Spain’s online-age debate and the crypto community’s take
The debate over online age verification in Spain has put digital privacy and child protection at the center of a broader conversation about how to manage identity in a networked world. The policy proposal channels pent-up concerns about how data may be collected, stored, and leveraged by both public and private actors. Crypto-focused voices have urged policymakers to consider solutions that minimize exposure of personal data through cryptographic techniques that allow age verification without disclosing who a person is or where they live. They argue that such approaches could reduce the risk of mass surveillance and data breaches while still meeting safety objectives.
As these conversations unfold, the industry is watching how Spain balances the competing priorities of child protection, free expression, and privacy. The outcome could influence how other jurisdictions structure their own digital-identity frameworks and what kinds of technology are promoted or discouraged in the process. The current discourse reflects a broader shift in which the crypto and privacy communities advocate for standards that empower individuals to prove specific attributes (like age) without revealing more than necessary. A decision in Spain could thus ripple across regulatory and technology choices worldwide, shaping how identity and access are managed online for years to come.
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Crypto World
These bitcoin-linked stocks are doing better than BTC: Crypto Daybook Americas
By Omkar Godbole (All times ET unless indicated otherwise)
Traders chasing alpha might want to take a look at U.S.-listed bitcoin mining stocks. Some of these companies are surging, boldly decoupling from the cryptocurrency’s choppy price action.
Shares in Terawulf (WULF) have gained 31% this month, even as bitcoin’s spot price has dropped nearly 17%. Cipher Digital (CIFR) and HUT 8 (HUT) have gained 8% and 6%, respectively, while Core Scientific (CORZ) is largely steady.
According to Markus Thielen, founder of 10x Research, these are among the most heavily shorted stocks by hedge funds and could gain due to positive economics.
“With long-term energy contracts secured at attractive rates, these firms possess a strategic advantage that extends well beyond pure Bitcoin mining,” Thielen said in a note to clients.
He added that capital is increasingly flowing toward structural winners, while legacy operators risk being left behind.
Bitcoin has bounced to over $65,000, likely tracking gains in futures tied to the Nasdaq 100 index. The advance occurred even though President Donald Trump didn’t mention crypto in his State of the Union address.
Spot bitcoin ETFs recorded $257.7 million in net inflows on Tuesday, the most since early February, according to data from SoSoValue. Analysts said inflows need to hold up over the coming days to spark a real market rebound from this slump.
In terms of price, bitcoin is trading close to well-watched pivots, Vikram Subburaj, CEO of Mumbai-based Giottus.com, said.
“A sustained break below $60,000 is widely framed as a downside trigger, with ~$57,500 cited as the next notable level. Conversely, reclaiming $72,000-$75,000 would be a cleaner signal that risk appetite is returning,” Subburaj said in an email.
In traditional markets, the Dollar Index reversed early losses, pressuring dollar‑denominated assets such as gold and bitcoin. Oil prices slipped as U.S. stockpiles surged, though downside remained muted amid the risk of a potential military conflict between the U.S. and Iran. Stay alert.
Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today
What to Watch
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.
- Crypto
- Macro
- Feb. 25, 4:30 p.m.: U.S. Fed balance sheet for week ending Feb. 25 (Prev. $6.61T)
- Earnings (Estimates based on FactSet data)
- Feb. 25: Circle (CRCL), pre-market, $0.16
- Feb. 25: Core Scientific (CORZ), post-market, -$0.18
- Feb. 25: MARA Holdings (MARA), post-market, -$0.11
- Feb. 25: Hut 8 (HUT), pre-market, -$0.13
- Feb. 25: NVIDIA (NVDA), post-market, $1.50
Token Events
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.
- Governance votes & calls
- Feb. 25: EigenCloud to host a livestream with Puffer Finance on “Preconfirmations & the Future of Rollups”
- The Sandbox DAO is voting to pause operations and transfer control to the project team to realign with “The Sandbox 3.0”. The proposal currently has the support of 80% of voters. Voting ends Feb. 25.
- Decentraland DAO is voting to create a customizable “Windfall Lotto Scene” template for land owners. Voting ends Feb. 25.
- Unlocks
- Feb. 25: Humanity (H) to unlock 4.37% of its circulating supply worth $17.71 million.
- Token Launches
Conferences
For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.
Market Movements
- BTC is up 2.37% from 4 p.m. ET Tuesday at $65,564.62 (24hrs: +3.55%)
- ETH is up 3.31% at $1,915.35 (24hrs: +4.89%)
- CoinDesk 20 is up 2.97% at 1,901.09 (24hrs: +4.17%)
- Ether CESR Composite Staking Rate is up 2 bps at 2.83%
- BTC funding rate is at -0.0007% (-0.7643% annualized) on Binance

- DXY is unchanged at 97.82
- Gold futures are up 0.58% at $5,206.50
- Silver futures are up 3.82% at $91.50
- Nikkei 225 closed up 2.20% at 58,583.12
- Hang Seng closed up 0.66% at 26,765.72
- FTSE is up 0.79% at 10,764.79
- Euro Stoxx 50 is up 0.5% at 6,147.32
- DJIA closed on Tuesday up 0.76% at 49,174.50
- S&P 500 closed up 0.77% at 6,890.07
- Nasdaq Composite closed up 1.04% at 22,863.68
- S&P/TSX Composite closed up 0.57% at 33,970.38
- S&P 40 Latin America closed up 1.53% at 3,800.72
- U.S. 10-Year Treasury rate is up 2.1 bps at 4.054%
- E-mini S&P 500 futures are up 0.11% at 6,911.25
- E-mini Nasdaq-100 futures are up 0.15% at 25,066.25
- E-mini Dow Jones Industrial Average Index futures are unchanged at 49,277.00
Bitcoin Stats
- BTC Dominance: 58.52% (+0.13%)
- Ether-bitcoin ratio: 0.02917 (0.9%)
- Hashrate (seven-day moving average): 1,034 EH/s
- Hashprice (spot): $28.69
- Total fees: 2.7 BTC / $171,903
- CME Futures Open Interest: 114,890 BTC
- BTC priced in gold: 12.6 oz.
- BTC vs gold market cap: 4.38%
Technical Analysis
- The chart shows daily price swings in solana (SOL) in candlestick format.
- The drop from September highs could be described as a stair-step decline, where prices fall, then move sideways in consolidation, and then resume selling.
- Lately, the price has been consolidating between roughly $75 and $91. A move below the lower end of the range would imply resumption of the broader downtrend, potentially yielding a deeper slide.
Crypto Equities
- Coinbase Global (COIN): closed on Tuesday at $162.03 (+1.12%), +2.14% at $165.49 in pre-market
- Circle Internet (CRCL): closed at $61.37 (+0.33%), +16% at $71.00
- Galaxy Digital (GLXY): closed at $21.54 (+5.90%)
- Bullish (BLSH): closed at $30.76 (+0.42%), -1.63% at $30.26
- MARA Holdings (MARA): closed at $8.05 (+2.16%), +1.61% at $8.18
- Riot Platforms (RIOT): closed at $16.50 (+5.43%), +1.94% at $16.82
- Core Scientific (CORZ): closed at $17.87 (+5.80%), +0.78% at $18.01
- CleanSpark (CLSK): closed at $10.35 (+5.40%), +1.93% at $10.55
- CoinShares Valkyrie Bitcoin Miners ETF (WGMI): closed at $42.71 (+7.42%)
- Exodus Movement (EXOD): closed at $9.76 (+2.20%)
Crypto Treasury Companies
- Strategy (MSTR): closed at $124.61 (+0.73%), +2.51% at $127.74
- Strive (ASST): closed at $7.16 (-2.65%), +0.35% at $7.19
- SharpLink Gaming (SBET): closed at $6.55 (+0.92%), +2.90% at $6.74
- Upexi (UPXI): closed at $0.61 (+7.61%)
- Lite Strategy (LITS): closed at $1.11 (+3.74%)
ETF Flows
Spot BTC ETFs
- Daily net flows: $257.7 million
- Cumulative net flows: $54.05 billion
- Total BTC holdings ~1.26 million
Spot ETH ETFs
- Daily net flows: $9.2 million
- Cumulative net flows: $11.51 billion
- Total ETH holdings ~5.64 million
Source: Farside Investors
While You Were Sleeping
Crypto World
Ripple (XRP) Price Predictions for This Week
XRP falls again under $1.4. When will the downtrend end?
Ripple (XRP) Price Predictions: Analysis
Key support levels: $1
Key resistance levels: $1.4
XRP’s Downtrend Continues
XRP made a brief attempt to hold the support at $1.4, but sellers returned and pushed the price lower, which turned this level into a key resistance. Hopefully, buyers will show up soon to reverse this trend before it is too late.
Sellers Dominate
Since the start of the year, XRP has closed 6 of 7 weekly candles in the red. That is extremely bearish and left no space for a relief rally. Considering how aggressive this selloff is, a future bounce will likely be just as significant and sharp.
Daily MACD is Bullish
Even if the price action remains bearish, the MACD momentum indicator on the daily timeframe is bullish with a positive histogram. As long as this holds, XRP may be forming a complex reversal pattern that could see it attempt to move higher soon.
Watch closely the level at $1.4. If reclaimed again, bulls may be returning.
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Nvidia Smashes Earnings, Stock Price Briefly Breaks $200
Nvidia shares surged in after-hours trading Wednesday after the company reported another strong earnings beat driven by relentless demand for artificial intelligence chips.
The stock briefly crossed the $200 mark before pulling back, reflecting both investor optimism and profit-taking following the announcement.
Nvidia Earnings Beat All Wall Street Forecasts
The company reported quarterly revenue of $68.1 billion, up sharply from a year earlier and above Wall Street expectations. Adjusted earnings per share came in at $1.62, also beating forecasts.
The results reinforced Nvidia’s dominant position as the primary supplier of AI computing hardware powering cloud providers, startups, and enterprise AI deployments.
However, the stock reaction showed mixed sentiment. Nvidia initially jumped after the report, pushing past $200 in after-hours trading.
Yet gains faded quickly, and the stock dropped back toward the mid-$190 range as traders locked in profits and reassessed future growth expectations.
Investors focused heavily on Nvidia’s outlook. The company projected around $78 billion in revenue for the next quarter, exceeding analyst estimates.
This suggested that AI infrastructure spending remains strong, despite recent concerns about slowing demand or overspending in the sector.
Meanwhile, Nvidia’s data center business continued to drive most of its growth. Cloud companies and governments are racing to build AI infrastructure, and Nvidia’s chips remain central to that expansion.
CEO Jensen Huang said customers are investing aggressively in AI compute to support future services and automation.
Still, the pullback after the initial surge highlights investor caution. Nvidia has already delivered massive gains over the past two years, and expectations remain extremely high.
Even strong results can trigger volatility if traders were positioned for larger surprises.
Ultimately, the earnings report confirmed one key point: AI spending remains strong, and Nvidia continues to capture the bulk of that demand.
Crypto World
Phemex AI Bot automates grid, Martingale and futures strategies
Phemex launches AI Bot in Feb 2026, automating grid strategies for 10m users under its AI-native initiative.
Summary
- AI Bot supports Futures Grid, Spot Grid and Martingale systems with machine-learning driven, real-time market analysis.
- Built-in risk controls dynamically tune leverage and parameters using historical volatility to curb drawdowns.
- “AI Bot Carnival” offers loss protection for new users plus volume-based rewards for running multiple bots.
Cryptocurrency exchange Phemex announced the launch of its AI Bot trading system, according to a company statement released Thursday, marking a development in the platform’s transition to an AI-integrated exchange model.
The trading bot represents a deployment of artificial intelligence technology for the exchange’s 10 million users globally, the company stated. The system automates quantitative trading strategies across Futures Grid, Spot Grid, and Martingale trading systems.
Earlier in 2024, Phemex announced an AI-Native Initiative aimed at integrating artificial intelligence across its operations and product infrastructure, according to the company. The AI Bot launch serves as an implementation of that strategy, moving from planning into operational deployment.
The trading system utilizes machine learning to analyze data points in real-time and automates trading strategies, according to the company. The bot includes risk management features that adjust leverage and parameters based on historical volatility data, Phemex stated.
The company has initiated an “AI Bot Carnival” promotional program featuring a loss protection program for new users, along with volume-based rewards and incentives for users operating multiple bots, according to the announcement.
“Phemex AI Bot is solid proof that our AI-Native strategy is not theoretical — it is operational,” stated Federico Variola, CEO of Phemex. “We are not experimenting with AI at the margins. We are actively building an exchange where intelligent systems are embedded into how products function.”
Phemex was founded in 2019 and operates as a cryptocurrency exchange offering spot and derivatives trading, copy trading, and wealth management products, according to company information. The platform serves over 10 million traders worldwide.
Crypto World
Aave Delegate Slams Aave Labs’ Track Record as Governance Dispute Continues
Aave-Chan Initiative’s Marc Zeller took to the governance forum to criticize Aave Labs in light of its latest funding request.
The dispute between Aave Labs and the Aave DAO appears to be escalating, with DAO delegates ramping up their hostility after Labs’ “Aave Will Win” proposal requested another $51 million in development funding from the DAO.
On Feb 20, delegate BGD Labs announced its intent to halt its work with the DAO due to Labs’ focus on Aave V4 rather than “a very mature and successful V3.” The decision came after Aave Labs co-founder Stani Kulechov stated in the proposal that “Once V4 is mature, V3 parameters should be gradually adjusted to encourage migration, following the same approach used in past version transitions.”
Marc Zeller, the founder of Aave-Chan Initiative (ACI), another service provider to the Aave DAO, called BGD’s impending departure from the DAO a major change and sold a portion of his AAVE holdings.
Today, the feud between the DAO and Labs was cranked up a notch after Zeller published a full audit of Labs’ performance in the Aave governance forum, bashing Aave Labs’ product delivery, profitability, and business development (BD).
Zeller referred to Labs’ standalone products, including Lens Protocol, GHO v1, and Horizon, as “The Product Graveyard,” citing “zero successes.” He went on to point out that even its more successful launches, such as Horizon, which has commanded over $500 million in total value locked (TVL), still resulted in a negative 96% return on investment (ROI), and that Aave’s stablecoin, GHO v1, depegged and had to be rebuilt by BGD and TokenLogic.

The report went on to criticize Aave Labs’ BD department, noting that Labs was set to work with prominent entities in DeFi and traditional finance like Coinbase’s Layer 2 Base, World Liberty Financial, Apollo, and Mantle.
Morpho emerged as the most notable competitor in these relationships and now serves as the backend of Coinbase’s decentralized lending product, and recently announced a partnership with $800 billion asset manager Apollo Global Management.
While the relationship between the DAO and Labs continues to crack, Aave remains DeFi’s leading protocol by TVL, accounting for more than 28% of the DeFi market with $27.5 billion across all chains.
Meanwhile, Morpho is the second largest lending protocol and sixth largest in DeFi with $5.8 billion.
Despite Aave’s leading position in terms of TVL and brand recognition, its native AAVE token is trading near multi-year lows at just $122, or a $1.9 billion fully diluted valuation, after reaching as high as $380 in December 2024 and $660 in 2021.

Aave Labs did not respond to The Defiant’s request for comment.
Crypto World
Bitcoin Price Prediction: Major Miner Just Expanded in Texas: Is a Massive BTC Production Surge Coming?
A major mining manufacturer just made a decisive move in Texas.
Canaan Inc. spent $39.75M in stock to acquire Cipher Mining’s 49% stake in three operational Texas projects, instantly adding 4.4 EH/s to its mining fleet and securing 120 MW of power capacity.
For a company long known as a hardware seller, this marks a clear pivot toward direct Bitcoin production.
This is vertical integration in action. Canaan is no longer just selling ASICs. It is operating them. The deal also brings thousands of its own Avalon rigs back under its control, tightening its grip on both equipment and output.
The Texas location matters. Low power costs within the ERCOT grid make it one of the most competitive mining regions in the U.S. Locking in that energy exposure signals confidence in long term network profitability.
The timing is notable. While some miners have recently sold down BTC reserves to manage liquidity, Canaan is expanding capacity instead. That suggests management sees value in increasing production rather than reducing exposure.
Bitcoin Price Prediction: The Major Support Held, Now Send It?
Bitcoin just bounced cleanly off the $64,000 support. That level did its job for now.
This is the decision point.

If BTC builds momentum here and stays above the descending trendline, the next target sits around $71,000. Clear that, and $80,000 opens up, with $90,000 back on the table if continuation follows.
But if this bounce fades and price rolls over again, a second test of $64,000 becomes dangerous. Support levels weaken with repeated hits.
A clean break below would likely drag BTC toward $60,000, where the broader macro base sits.
New Bitcoin Presale Brings Solana Technology to The BTC Blockchain
Bitcoin Hyper ($HYPER) is a new presale built to make Bitcoin faster and cheaper to use.
This Bitcoin-focused Layer-2, powered by Solana technology, brings speed, lower fees, and real on-chain functionality while preserving Bitcoin’s core security.

It takes Bitcoin from being just a chart you watch all day and turns it into something you can actually use, payments, staking, real apps, the whole thing.
And this is not just hype. The Bitcoin Hyper presale has already raised over $31 million, with $HYPER sitting at $0.0136751 before the next price jump.
Staking rewards are going up to 37% right now, which definitely grabs attention.
If Bitcoin explodes, Bitcoin Hyper moves with it. If Bitcoin keeps moving sideways, Bitcoin Hyper still benefits from activity on the network. Either way, it is not just sitting there waiting for candles to move.
To buy HYPER before it lists on exchanges, simply visit the official Bitcoin Hyper website and connect a wallet (such as Best Wallet).
Visit the Official Bitcoin Hyper Website Here
The post Bitcoin Price Prediction: Major Miner Just Expanded in Texas: Is a Massive BTC Production Surge Coming? appeared first on Cryptonews.
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.
Crypto World
SOL AI bot misfires, sends $250k LOBSTAR, holder nets ~$6k

LOBSTAR jumped ~190% in 24h after SOL AI agent mistakenly sent 5% supply to a random user, highlighting agentic risk. An artificial intelligence agent operating a Solana blockchain wallet mistakenly transferred 52.4 million LOBSTAR tokens to an unintended recipient due…
Crypto World
Pi Network (PI) Price Predictions for This Week
PI is attempting to break away from its longstanding downtrend. Will it succeed?
PI Network (PI) Price Predictions: Analysis
Key support levels: $0.15
Key resistance levels: $0.20
PI Breakout
The current price action suggests that buyers are attempting to break out of the existing downtrend. PI found good support above 15 cents, and as long as this holds, buyers have a good shot at higher levels. The current resistance is at 20 cents.
Bounce in Progress
After PI was rejected at 20 cents, the price entered into a pullback that is now bouncing on the downtrend line. If the bulls can hold the price here and push it to a higher high later, the breakout from this downtrend will be successful.
RSI Higher Highs
A key signal that bulls are on the offensive can also be seen on the 3-day RSI, which made a higher high. This could be an early sign that the buyers mean business and they will also attempt to send the price into a higher high above 20 cents next.
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Polkadot (DOT) surges 17.2% as all assets rise
CoinDesk Indices presents its daily market update, highlighting the performance of leaders and laggards in the CoinDesk 20 Index.
The CoinDesk 20 is currently trading at 1937.2, up 4.4% (+82.19) since 4 p.m. ET on Tuesday.
All 20 assets are trading higher.

Leaders: DOT (+17.2%) and AVAX (+12.9%).
Laggards: BTC (+2.8%) and AAVE (+3.0%).
The CoinDesk 20 is a broad-based index traded on multiple platforms in several regions globally.
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Video6 days agoXRP News: XRP Just Entered a New Phase (Almost Nobody Noticed)
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Politics4 days agoBaftas 2026: Awards Nominations, Presenters And Performers
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Fashion5 days agoWeekend Open Thread: Boden – Corporette.com
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Sports2 days agoWomen’s college basketball rankings: Iowa reenters top 10, Auriemma makes history
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Politics2 days agoNick Reiner Enters Plea In Deaths Of Parents Rob And Michele
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Sports7 days agoClearing the boundary, crossing into history: J&K end 67-year wait, enter maiden Ranji Trophy final | Cricket News
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Crypto World2 days agoXRP price enters “dead zone” as Binance leverage hits lows
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Business3 days agoLaw enforcement kills armed man seeking to enter Trump’s Mar-a-Lago resort, officials say
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Tech1 day agoUnsurprisingly, Apple's board gets what it wants in 2026 shareholder meeting
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Business1 day agoTrue Citrus debuts functional drink mix collection
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NewsBeat1 day agoPolice latest as search for missing woman enters day nine
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Crypto World1 day agoEntering new markets without increasing payment costs
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Sports3 days ago
2026 NFL mock draft: WRs fly off the board in first round entering combine week
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Crypto World6 days ago83% of Altcoins Enter Bear Trend as Liquidity Crunch Tightens Grip on Crypto Market
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Business1 day agoWBD says Paramount makes higher bid, board will weigh offer against Netflix deal

