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Toobit Named Global Exchange of the Year as AI and TradFi Push Expands

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Toobit exchange of the year

Cryptocurrency exchange Toobit has been named Global Exchange of the Year at the FinanceFeeds Awards 2026, giving the trading platform its fourth major industry award of the year.

The FinanceFeeds Awards recognize companies across fintech and digital assets, with the Global Exchange of the Year category focused on exchanges capable of operating broad trading infrastructures at scale.

For Toobit, the award comes during a year in which the exchange has expanded well beyond conventional crypto spot and futures markets. Its platform now combines derivatives, copy trading, AI-based trading tools and more than 150 TradFi pairs, while its DEX+ product extends access to on-chain and pre-IPO assets.

Toobit exchange of the year

The latest win follows three previous awards: Best New Exchange at the Crypto Awards 2025, presented in January 2026; Digital Asset Derivatives Platform of the Year at the Hedgeweek Global Digital Assets Awards in June; and Best Crypto Exchange for Day Trading at the CoinGape Web3 Innovation Awards in July.

That run of awards also reflects how quickly Toobit has built out its trading infrastructure.

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The exchange regularly reports more than $30 billion in daily trading volume across more than 1,000 trading pairs, with more than 4 million active traders across 100-plus countries. Although Toobit offers regular spot trading, its strongest focus remains on active traders using perpetual futures, automated strategies, and other higher-frequency products.

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From Crypto Futures to Nvidia in the Same Account

One of the more unusual parts of Toobit is the range of markets available without requiring traders to leave the platform.

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In our Toobit review, we found that a user could move from copy-trading a professional strategy to taking a leveraged position in Nvidia stock, then use an AI model to manage another trade via natural-language instructions.

Toobit’s TradFi product is particularly useful in that setup because, instead of requiring a separate brokerage account, the exchange offers exposure to stocks, forex, and metals via USDT-settled perpetual contracts.

Its stock futures include major U.S. names such as Tesla, Nvidia, and Apple, while an expansion announced in May added another 13 trading pairs, including Qualcomm, IonQ, and Oklo – there are currently more than 150 pairs and growing all the time.

Because these products are derivatives rather than shares held directly by the trader, users can trade with USDT already held in their Toobit futures account. The contracts can also continue trading outside conventional equity-market hours, including weekends and holidays.

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Leverage of up to 500x is available on some TradFi perpetual contracts. Toobit’s futures interface also supports simultaneous split and merged position management.

TradingView integration, futures bots, and multi-chart layouts that support up to 8 views are also built into the platform.

Toobit Brings AI Directly Into Trading

Artificial intelligence has become another major part of Toobit’s expansion.

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In March, the exchange released its AI Agent Trade Kit, an open-source framework designed to connect large language models directly with trading functions on Toobit.

The system uses the Model Context Protocol (MCP), allowing compatible AI agents to carry out tasks such as monitoring markets, managing spot and futures orders, and tracking portfolio balances via natural-language commands.

The kit supports more than 65 tools and can run locally, with credentials stored on the user’s device rather than transferred to an external AI service.

Toobit has also developed Synapse, its built-in AI assistant, which requires no outside configuration or separate AI subscription. It can assist with market research, strategy generation, and analysis of existing positions directly from the Toobit interface.

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Zero Spot Fees Run Until September

Toobit’s zero-spot-fee promotion runs from June 26 through September 26, 2026, removing maker and taker fees on eligible spot trades during the campaign.

Outside the promotion, Toobit’s standard spot fees start at 0.075% for makers and 0.10% for takers.

Base perpetual futures fees are 0.02% for makers and 0.06% for takers.

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Deposits are free, while crypto withdrawals vary by blockchain network. Toobit also charges no fee for its Convert tool, account creation, inactivity, P2P trading, or DEX+ transactions, although blockchain gas fees still apply to DEX+ activity.

Proof of Reserves Adds to Security Framework

The exchange’s expansion has been accompanied by additional reserve and custody measures.

A May 2026 Proof of Reserves review, independently verified by Hacken, showed reserves exceeding 100% for the major assets examined.

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As of May 1, Toobit reported reserve ratios of 106% for BTC, 106% for ETH, 106% for USDT, and 102% for USDC. The audit covered balances belonging to more than 640,000 accounts and included verification of liabilities.

Toobit also operates a ~$40 million Shield Fund intended to cover qualifying losses resulting from internal technical or security failures, with fund information displayed on a public dashboard.

Custody infrastructure includes Fireblocks’ Multi-Party Computation technology alongside air-gapped cold-wallet storage, and the exchange is ISO 27001-certified.

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Strategy Remains Committed to Bitcoin Buys Despite Recent BTC Sales, CEO Says

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Strategy Remains Committed to Bitcoin Buys Despite Recent BTC Sales, CEO Says

Strategy CEO Phong Le said the company plans to resume accumulating Bitcoin later this year, even after shifting business priorities prompted it to sell portions of its holdings in moves that drew scrutiny from the market.

In a Monday interview with FOX Business, Le said Strategy had purchased around 175,000 Bitcoin since the beginning of the year while selling roughly 7,000 BTC, making the company a significant net buyer.

That’s “about 25 times more” buying than selling, Le said. He added that Strategy has gone from the world’s second-largest institutional Bitcoin holder to the largest.

“We’ll get back to buying more Bitcoin throughout the course of the year,” Le said.

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Strategy CEO Phong Le appears on FOX Business. Source: FOX

While Strategy has accumulated more than 840,000 BTC, it has sold Bitcoin on four occasions since May, with the most recent sale totaling 1,690 BTC. The company has used proceeds from its recent sales to support preferred stock dividends, share repurchases and its US dollar reserve.

Despite the relatively small size of the sales compared with its overall holdings, Strategy has faced scrutiny for departing from its long-standing “never sell” approach to Bitcoin. The shift highlights the competing demands facing Strategy as a public company, including obligations to common and preferred shareholders alongside its Bitcoin accumulation strategy.

Related: Strategy unveils capital framework to preserve Bitcoin exposure, pay dividends

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BTC treasury model faces pressure amid bear market

The corporate Bitcoin treasury model has come under pressure as weaker market conditions challenge the economics that helped fuel its rapid expansion. Public companies hold more than 1.26 million BTC, trailing exchange-traded funds and other funds, which hold more than 1.6 million BTC, according to BitcoinTreasuries.NET.

The model has historically benefited from a financing cycle in which Bitcoin treasury companies traded at premiums to the value of their BTC holdings, allowing them to raise capital through equity or debt and use the proceeds to buy more Bitcoin, according to Novaque Research.

However, that cycle becomes more difficult to sustain when companies trade below the net asset value of their Bitcoin holdings because raising new capital becomes increasingly dilutive to shareholders.

Magazine: Sorry everyone, Bitcoin is headed down to $43,500: Michael Terpin

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XRP Price Drops Below $1 After Coreum Bridge Hack. First-Time Since 2024

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Bridge XRP balance · 9 Aug 2026, 97 minutes. Source: XRPL.to

An attacker drained nearly 200,000 XRP tokens from the Coreum bridge in 97 minutes on August 9, exploiting a validation gap in the relayer software rather than any weakness in the XRP Ledger.

The bridge halted operations as XRP slid below $1 amid broader market caution.

What Actually Went Wrong on the Bridge

A blockchain bridge is an infrastructure that connects two separate networks. This allows users to move value between chains that cannot communicate directly. Relayers monitor both sides and authorize transfers.

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Coreum Bridge lets users lock XRP on XRPL and receive an equivalent bridged version on the Coreum blockchain, which they can use in Coreum apps and later bridge back to XRPL.

So, how did the hack happen? The numbers tell a precise story. The bridge account held roughly 200,410 XRP before the incident and began releasing funds at 19:16 UTC.

Over 97 minutes, the account executed 94 payments totaling 199,916.3 XRP to two newly created wallets, leaving just 493.5 XRP behind.

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Bridge XRP balance · 9 Aug 2026, 97 minutes. Source: XRPL.to
Bridge XRP balance · 9 Aug 2026, 97 minutes. Source: XRPL.to

Every transfer carried a valid authorization. A quorum of 17 out of 28 relayer keys signed each outgoing payment through the multi-signature process. Early social media explanations proved wrong. Warnings blamed rippling and the DefaultRipple flag, though native XRP cannot ripple because it has no issuer or trust lines.

The actual cause sat in the code. Relayers monitor XRP Ledger transactions and submit attestations whenever they detect payments carrying a Coreum-recipient memo.

One check was missing entirely. The software never verified that the payment destination was the bridge itself before crediting the corresponding balance. That omission opened the door.

Transfers between wallets controlled by the attacker were treated as genuine deposits, generating credits that later funded withdrawals of real XRP.

Valid signatures, correct procedure, false premise. The bridge credited the attacker with a transfer he sent to himself, recording it on Coreum as though the money had genuinely come in. Source: XRPL.to

Why the XRP Ledger Was Never at Risk

The execution followed a pattern. Small probe transfers doubled in size before a steady stream of payouts averaging roughly 1,695 XRP every 50 seconds. Laundering began immediately. The receiving wallets forwarded most of the funds, complicating efforts to trace where the proceeds ultimately landed.

An important distinction deserves emphasis. No private keys were compromised, and the multi-signature process functioned exactly as designed, only on flawed evidence.

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The XRP Ledger itself remained fully secure. The incident did not affect any of its core protocols, consensus mechanisms, or native transaction handling. Coreum suspended the bridge pending repairs.

Any restart will require destination-address verification, the check whose absence enabled the entire sequence.

An official post-mortem remains pending. Until it arrives, the full timeline and remediation plan stay incomplete for affected users.

XRP traded below $1 on August 11, down roughly 3.30% in the last 24 hours, according to BeInCrypto data.

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XRP Price Performance. Source: BeInCrypto

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Tether is Killing Its Gold Stablecoin Experiment in 37 Days. Should Investors Worry?

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Tether is Killing Its Gold Stablecoin Experiment in 37 Days. Should Investors Worry?

Tether will shut down Alloy, its gold-backed lending platform, on September 17. Five customers still owe 399,088.74 aUSDT against 194.41 Tether Gold (XAUT) in collateral, and the clock now reads 37 days.

But there’s a bigger concern. For every $10,000 in Tether Gold, about $3 sits in Alloy. The other 99.97% of the token is untouched.

What’s Happening to Tether’s Alloy Platform

Alloy launched on June 17, 2024, and CEO Paolo Ardoino pitched it as a new breed of gold-backed digital money. Users deposited XAUT, a token backed by one troy ounce of Swiss-vaulted gold. Against that, they borrowed aUSDT, a dollar-tracking token.

The product never grew. Its June 30 attestation valued all collateral at just $1.9 million. Tether runs USDT, a $183 billion stablecoin, so Alloy amounted to a rounding error.

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Two years to the day after launch, Tether announced the wind-down. New minting stopped immediately. September 17 is the last day to repay aUSDT and pull collateral out.

Since then, borrowers have repaid more than half. Alloy’s own data listed just five open positions on August 10. Their gold is worth about $850,000 at XAUT’s current price of $4,372.

Tether Gold (XAUT) Price Performance. Source: BeInCrypto

What the Shutdown Means for Tether Gold Investors

Regular holders can relax. XAUT is not closing, and it remains a $2.7 billion token. The 194 locked ounces equal 0.03% of its 707,747-token supply.

Two cautions still apply. Exiting costs a 0.25% fee, and Tether has published no recovery path for anyone who misses the date. Buying aUSDT on the open market also grants no claim on anyone’s locked gold.

Meanwhile, demand for the token itself looks healthy, and Tether Gold whale flows have picked up in recent weeks. The real question is smaller than the headline. Will five borrowers settle up in the next 37 days?

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Bitcoin Carry Trade Tops Treasury Yields at 7.89%: Will Wall Street Rotate?

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30-Year US Treasury Yields. Source: TradingView

The Bitcoin carry trade now pays more than US government debt. On August 7, annualized Chicago Mercantile Exchange (CME) Bitcoin (BTC) futures carry reached 5.69% to 7.89%, well above the 4.19% two-year Treasury yield recorded the same day.

The flip lands at an awkward moment for bonds. Long-term Treasury yields sit at their highest levels since 2007, and forecasters keep raising their estimates.

30-Year US Treasury Yields. Source: TradingView
30-Year US Treasury Yields. Source: TradingView

Bond Forecasters Keep Chasing Yields Higher

A Reuters poll sees calmer bonds ahead. The median forecast puts the 10-year yield at 4.50% in three months and 4.34% in a year. The two-year is seen sliding to 3.80%.

However, the same survey carries a warning. Eighteen of 22 strategists said the 10-year is more likely to overshoot those forecasts than undershoot them.

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Their track record explains the caution. In March, the same poll series saw the 10-year near 4.25% a year out. Five months later, it trades above 4.70%.

Meanwhile, the long end is already breaking ranks. The 30-year yield touched 5.27% on Tuesday, its highest since 2007. BeInCrypto covered the 30-year Treasury yield closing at a 2007 high in late July.

Real yields are doing the damage, not inflation bets. In other words, investors want more compensation for US deficits and heavy debt sales.

Bitcoin Carry Trade Outpaces the Two-Year Treasury

The trade itself is simple. A desk buys spot Bitcoin and shorts a CME futures contract against it. The gap between the two prices becomes the return, collected as they converge at expiry. Think of it as crypto’s version of a bond coupon.

On August 7, that gap beat the government. Measured against the $64,880 CME New York spot benchmark, the August contract settled at $65,175. That works out to a 7.89% annualized return.

September paid 6.25% and December 5.69%. Official Treasury data put the two-year at 4.19% that day, and 4.25% by August 10.

Comparison of Aug. 7 CME Bitcoin futures gross annualized basis versus the two-year Treasury yield, illustrating the Bitcoin carry trade advantage. Source: BeInCrypto
Comparison of Aug. 7 CME Bitcoin futures gross annualized basis versus the two-year Treasury yield, illustrating the Bitcoin carry trade advantage. Source: BeInCrypto

Positioning suggests the shift has teeth. CME data showed hedge funds turned bullish on Bitcoin this month for the first time in years.

Historically, those funds ran net short futures, the classic footprint of carry desks hedging spot and ETF holdings.

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ETF Money Flows In, but the Fine Print Matters

Fresh cash is arriving on the spot side too. Farside data shows US spot Bitcoin ETFs pulled in $865 million in the week ended August 7, with every session positive. BlackRock’s IBIT took roughly $694 million of that, about 80%.

Bitcoin ETF Flows. Source: Farside Investors
Bitcoin ETF Flows. Source: Farside Investors

Still, the flows cannot show motive. No public dataset links an ETF purchase to a futures hedge. Commodity Futures Trading Commission (CFTC) reports only aggregate positions by trader type.

The gross spread also flatters the trade. Financing, margin, and fees all take a cut before a desk keeps anything. A Bank for International Settlements study found crypto carry can top 40% a year during booms, yet margin frictions stop arbitrage capital from fully closing the gap.

Bitcoin trades near $63,930, up 0.3% over the past day. Therefore, the number to watch is the net spread after costs, read beside CME open interest and ETF flows. Wednesday’s July CPI print could move both sides of that ledger.

The post Bitcoin Carry Trade Tops Treasury Yields at 7.89%: Will Wall Street Rotate? appeared first on BeInCrypto.

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What Are Trump’s Patriot Games? Teens From Every State Are Competing for a $250,000 Prize Pool

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What Are Trump's Patriot Games? Teens From Every State Are Competing for a $250,000 Prize Pool

Two teenagers from each of the 50 U.S. states, as well as several territories and tribal nations, are competing this week for a hefty scholarship fund in President Donald Trump’s “Patriot Games” as part of the U.S. government’s commemoration of the country’s 250th birthday

The games consist of a series of physical challenges that are “designed to test strength, endurance, agility, teamwork, and perseverance,” the Freedom 250 website reads. 

Participating athletes arrived at the campus of SPIRE Academy, a sports-focused boarding school in Geneva, Ohio, late last week and began competing on Sunday. The events will continue through the finale, which is set to take place at 7 p.m. ET on Tuesday, and a one-hour special recapping the event is then set to air on Thursday. 

Trump is expected to attend the finale, according to Press Secretary Karoline Leavitt.

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“President Trump looks forward to attending the Patriot Games in Ohio on Tuesday as we continue to celebrate 250 years of American greatness!” Leavitt posted on X. 

The games follow a number of other semiquincentennial celebrations that have been organized by Freedom250, a nonprofit effort created by President Trump for the purpose, including a UFC fight on the White House lawn, a presidential State Fair on the National Mall, and the largest fireworks show in history on July 4th.

“This once-in-a-generation event will showcase the extraordinary talents that thrive across our country, proving to the world that the American competitive spirit is stronger and more vibrant than ever before,” Trump said in May of the Patriot Games.  

Here’s what to know about the competition.

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Who’s competing?

A total of 120 student athletes ranging in age from 14 to 17 are competing in the games. 

They are “representing America’s great states and territories, alongside athletes from tribal nations,” in the competition, according to the Freedom 250 website.One boy and one girl were chosen from each of the 50 states to compete. The games also include athletes from some U.S. territories, including Puerto Rico and Guam; military bases; and tribal nations, though the event’s website does not specify which.

To be eligible to compete, each of the athletes is required to be a U.S. citizen; a resident of the state, territory, or tribal nation they are representing; and in good academic standing. 

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Applicants for the games submitted short videos explaining their desire to compete. A Patriot Games Selection Committee then reviewed the submissions and selected the final competitors for the games. 

Tylee Herrmann, a 16-year-old from Arizona representing the Cherokee Nation, said that she wanted to “bring patriotism back to the U.S.” in her application video, according to CNN. “I think we need something to bring us all together, because we’re the United States of America, and we need to be a little more united,” she told the outlet.

Addalee Taflinger, another 16-year-old representing the Commonwealth of the Northern Mariana Islands, a U.S. territory located in the western Pacific Ocean north of Guam, told the Marianas Press that she was “shocked” to be accepted and wants to “bring awareness about Saipan, the typhoons, and all that we’ve been through and how we’re still able to go out and do cool things like this after.”

What are the events?

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The events include a “Presidential Fitness Test, a military-inspired boot camp circuit, an obstacle course, and team competitions such as Kickball, Dodgeball, Tug of War, and Victory Hoops,” according to the Patriot Games website. 

Qualifying rounds, along with kickball and dodgeball, took place on Sunday. On Monday, male and female competitors participated in a “varsity circuit” that strung together many sports: athletes had to throw footballs at targets, catch tennis balls out of the air, kick a soccer ball at a target, spike volleyballs over a net, hit wiffle balls with a bat, and sprint around a baseball diamond. Also on Monday, athletes competed in “operation endurance,” in which they had to maneuver through an obstacle course that involved army crawling, climbing nets, lifting heavy tires, monkey bars, and balance beams.

Tuesday’s events consist of tug of war; “victory hoops,” in which competitors shoot basketballs into an arcade-style hoop; the semifinal; and the final. 

What’s the prize for the winners?

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One male winner and one female winner will each receive a $125,000 scholarship. Competitions are separated between male and female athletes.   

How can you watch?

The games are being streamed live on ESPN from August 9-11. 

The one-hour prime time special will air on ABC on August 13 at 9 p.m. ET. 

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The Promise We Made to Americans with Disabilities Is Under Attack

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The Promise We Made to Americans with Disabilities Is Under Attack

These activities are neither optional nor negotiable—they’re the foundation of the inclusion that this country promised through the ADA.

The notion that families should provide care without additional support is unrealistic and shortsighted, especially for families of people with highly complex medical or behavioral needs. Direct support professionals are trained to implement individualized care plans with a person-centered approach, respond to behavioral crises, administer medications, and more. 

Moreover, this thinking also ignores reality. For instance, many disabled adults’ parents are elderly or deceased. Many of their spouses work full time, sometimes in multiple jobs to meet their families’ financial needs. Many of their siblings are in the same boat but may live hundreds of miles away. Some have no family to fall back on at all. 

Suggesting that people don’t have the right to community-based support while insisting families provide needed care for free risks undoing more than a quarter-century of civil rights progress made possible by Olmstead. Furthermore, dismantling the spectrum of community-based services is expected to have negative down-the-line ramifications. We anticipate that more families will languish on states’ waiting lists for longer, more providers will reduce services or go out of business altogether, more professionals will leave the workforce to fill caregiving gaps, and more people with disabilities will be left with no other choice but expensive, isolating institutions. 

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UK lawmaker group APPG questions lenders over lack of banking for the country’s crypto firms

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UK lawmaker group APPG questions lenders over lack of banking for the country’s crypto firms

A U.K. parliamentary group wrote to the bosses of the country’s largest lenders about the lack of banking services for crypto firms.

The “Dear CEO” letter, signed by co-chairs of the Crypto and Digital Assets All-Party Parliamentary Group (APPG), Gurinder Singh Josan and Ed Vaizey, asked banks to explain their approach to providing banking services to U.K. crypto and digital asset businesses.

“We have heard of repeated instances where crypto and digital asset firms have struggled to open accounts with U.K. banks. We have similarly heard reports that several banks have introduced restrictions on crypto-related payments and transactions,” Josan, a Labour MP, and Vaizey, a Conservative peer, wrote in the letter.

British banks that have introduced restrictions on crypto-related payments include HSBC, Nationwide, NatWest, Santander UK and Starling Bank.

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Ever since crypto came into being, difficulties around attaining banking relationships have made life hard for industry participants, with the systematic debanking of firms and individuals, particularly in the U.S., being referred to as “Operation Chokepoint 2.0.”

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Ousted Pudgy Penguins Co-Founder Sells Out 44,444-Piece NFT Mint on Robinhood Chain

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Ousted Pudgy Penguins Co-Founder Sells Out 44,444-Piece NFT Mint on Robinhood Chain


Cole Villemain, the Pudgy Penguins co-founder whose holders voted him out in January 2022, sold out a 44,444-piece NFT collection on Robinhood Chain in under an hour early Tuesday, taking in roughly $1.28 million according to an onchain tally of the mint transactions. Villemain, who posts as… Read the full story at The Defiant

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Luke Dashjr removed as Bitcoin BIP editor after controversial BIP-110 fork stalls

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Luke Dashjr removed as Bitcoin BIP editor after controversial BIP-110 fork stalls

Luke Dashjr, one of the key proponents of BIP-110 soft-fork attempt, has been removed from his position as an editor of such proposals for the development of the Bitcoin network.

The motion’s forwarding and subsequent carrying followed shortly after the controversial BIP-110, an attempt to temporarily restrict use of the Bitcoin network for non-financial purposes, stalled almost immediately after entering a signaling period for miners and node operators to demonstrate their support.

Dashjr, who was one of the most prominent Bitcoin developers driving the BIP-110 initiative, was accused of abusing his editorial authority in doing so, such as attempting to assign the proposal a BIP number before it had been discussed and then quickly merging an update into the repository without following due process.

“The latter is particularly notable given that Luke has otherwise made hardly any contributions to the day-to-day work of the BIP Editors since the additional editors began serving in April 2024: he left fewer than 1% of the BIP Editor comments in the repository since then, and the merge action of this PR was his first since May 2024,” Bitcoin developer Mark Erhardt wrote in a motion calling for Dashjr’s removal on Aug. 9.

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FlightAware Files Lawsuit Against Kalshi Over Flight Cancellation Data

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FlightAware Files Lawsuit Against Kalshi Over Flight Cancellation Data

FlightAware, a company that offers real-time status and information about flights globally, filed a lawsuit against Kalshi in a New York federal court over the prediction markets platform using its “data and name to run gambling markets on flight cancellations.”

In a Monday filing in the US District Court for the Southern District of New York, the company said that despite repeated demands for Kalshi to stop using its registered trademark and offering bets “verified by FlightAware’s data,” the prediction market has continued to list event contracts based on flight cancellations. 

The lawsuit cited authorities’ claims that event contracts on prediction market platforms like Kalshi were “wagers” in violation of state laws, adding that the company’s expansion to trading on commercial flights starting in July was associating FlightAware with activities potentially harming its reputation. FlightAware sought to “stop Kalshi’s illicit behavior before there is any harm to public safety.”

“[T]here was widespread outrage and concern that the markets would incentivize unsafe tactics to impact cancellations, threatening public safety and creating the potential for massive disruption of air travel. Airlines condemned the markets,” said the lawsuit. “And due to Kalshi’s unauthorized use of FlightAware’s data and mark, customers immediately assumed that FlightAware was involved in the scheme.”

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Example of flight cancellation event contract citing FlightAware data. Source: Kalshi

The FlightAware lawsuit, while based on trademark infringement, breach of contract, injury to its reputation and unfair competition, is just the latest legal entanglement prediction markets like Kalshi and Polymarket face. Many gaming authorities have petitioned courts to block the companies’ event contracts for residents in what is expected to become a showdown between federal regulators and state officials over alleged illegal gambling practices, usually focused on sports betting. 

Related: NY judge denies CFTC motion to halt enforcement action against Kalshi

Cointelegraph reached out to Kalshi for comment on the lawsuit but did not receive an immediate response.

Lawsuit highlights ’incentives for manipulation’ on prediction markets

The FlightAware lawsuit included language pointing out the potential for manipulation among prediction market contracts in which participants have knowledge about events before they become public. Some examples in the news include US President Donald Trump’s teleprompter operator reportedly making $100,000 in Kalshi bets tied to words in his speeches and a US soldier allegedly betting on the removal of Venezuelan President Nicolás Maduro in January, having been given nonpublic information about the military operation ousting him.

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FlightAware said that by Kalshi allowing event contracts on flight cancellations, there was not only the potential for manipulation, but also threats to passenger safety.

“A market that allows the public to wager on whether flights will be delayed or cancelled creates an incentive for participants to interfere with air travel—including by causing or contributing to flight cancellations—to profit from their wagers,“ said the lawsuit. “Worse, wagers on flights being timely may incentivize airline, airport, or other aviation workers to cut corners to keep a flight on time.“

Newsletter Predicted’s “State of Prediction Markets – Q2 2026” report said Kalshi and Polymarket collectively controlled more than 90% of all prediction market volume, with the two companies having more than $90 billion in second-quarter notional volume.

Magazine: 10 weirdest things ever tokenized… including farts

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