Kalshi Appeals Court Loss in Sports Prediction Market Fight

Political campaigns are increasingly deploying AI and deepfakes to further their messaging, and the scale of spread has experts concerned From the comfort of his bed, Jonathan Rinaldi, a political candidate for a city council seat in Queens, New York, tinkered away on his iPhone, prompting an artificial intelligence chatbot to mock up fake news hits and endorsements he had never received. During the campaign last October, Rinaldi shared one of those stories, made to appear real with a CNN logo, on his Facebook and Instagram. It stated that Lynn Schulman, his opponent and an incumbent Democrat, had been “forced to drop out of the race due to a series of critical mistakes”. But Schulman had not quit her campaign, and in November, won by a landslide. Continue reading...

The post Judge denies Kalshi bid to block New York gambling laws appeared on BitcoinEthereumNews.com. A federal judge in Manhattan refused to shield Kalshi from New York’s gambling laws on Tuesday, deepening a split among US courts over who regulates prediction markets and pushing the fight closer to the Supreme Court. The decision matters because federal appeals courts now disagree on the central legal question, and that kind of divergence is what tends to draw the justices in. Kalshi has already asked the Second Circuit to review the ruling. It was expected that the dispute could ultimately reach the Supreme Court, and each conflicting ruling makes that outcome harder to avoid. What the judge decided US District Judge Analisa Torres, who also presided over the SEC’s case against Ripple, denied Kalshi’s request for a preliminary injunction against the New York State Gaming Commission. The order landed in KalshiEX LLC v. Williams, filed July 7 in the Southern District of New York. At i

Kalshi appealed to the Second Circuit after a New York federal judge denied its request to block state gambling officials from enforcing local laws against its sports event contracts.

The post ‘Major loss’: New York Court rejects Kalshi’s injunction request appeared on BitcoinEthereumNews.com. Prediction market platform Kalshi has suffered a legal loss in New York. According to a court filing on the 7th of July, the firm was denied a preliminary injunction by Judge Analisa Torres of the Southern District of New York.  Judge Torres maintained that gambling falls under the purview of local state oversight.   The scope of laws regulating gambling and lotteries is clearly a matter of predominantly state concern. Additionally, Judge Torres clarified that federal law, the Commodity Exchange Act, does not preempt state gambling laws.  Courts apply a presumption against preemption with respect to areas where states have historically exercised their police powers. Source: Court Listener  She explained that such a presumption arises only when Congress legislates in a field traditionally governed by the states. In other words, federal authority applies only where Congress has

The post Satoshi Bitcoin lawsuit drops 44 wallets after on-chain activity appeared on BitcoinEthereumNews.com. A New York lawsuit seeking legal ownership of dormant Bitcoin wallets has narrowed after several listed addresses moved funds.  Summary Noah Doe’s legal team dropped 44 wallets after on-chain activity challenged the abandonment claim. The removed wallets held 21,443 BTC when the lawsuit started, according to Galaxy’s Thorn. Related filings and amicus briefs argue dormant self-custody does not prove Bitcoin was abandoned. Galaxy Research head Alex Thorn said the plaintiffs in the “abandoned bitcoin” lawsuit dropped 44 of 39,069 listed defendants. The case was filed by “Noah Doe” and two Wyoming entities seeking title to long-dormant Bitcoin wallets. Thorn said every removed wallet had moved coins on-chain since the case was filed. “Every single one had moved coins onchain since the case was filed,” he wrote in a July 8 thread on X. Meanwhile, the lawsuit asks the New York Supre

Noah Doe’s Bitcoin ownership lawsuit loses 44 wallets after on-chain moves challenge abandoned-property claims over Satoshi-era BTC.

The post Polymarket’s Frontend Attack Shows Why Real-Time Platforms Need Better User-Side Security appeared on BitcoinEthereumNews.com. Polymarket’s latest security incident did not begin with a broken smart contract. The prediction market platform said a compromised third-party vendor injected malicious code into its frontend for some users, exposing them to a phishing attack and forcing the company to promise full reimbursement. For crypto users, that detail matters. A platform can be sound on-chain and still become dangerous at the screen where a wallet signs, clicks, or confirms. The attack was not only about code According to TechRadar, Polymarket said the affected vendor had been contained and the compromised dependency removed after the attack was discovered. Blockchain monitoring firm PeckShield estimated that roughly $3 million in crypto was stolen from around 11 users, while Polymarket said it was contacting impacted users and refunding them in full. That sequence is familiar

The post Spotify Fraud Exposes Prediction Market Weak Spot appeared on BitcoinEthereumNews.com. The song hit No.1 on Spotify’s U.S. daily chart overnight. Then the floor dropped out. Spotify said it had yanked more than 500,000 artificial plays from Malcolm Todd’s “Earrings,” reshuffling the leaderboard after the fact and sending a chill through anyone betting on chart outcomes WIRED. Kalshi had already staked millions on which track would finish June on top. The market settled before Spotify finalized its purge. Payouts went one way. The data moved the other The Block (Bloomberg). One trader, Caleb Davies, flagged the jump as statistically absurd: a 70 percent weekend surge and an 11.24 sigma move — the kind of thing that basically never happens by chance — and that’s what kicked off the fraud review WIRED. The Big Picture: Mutable Data Meets Real Money Prediction markets love clean, public metrics. Sports scores. Election results. Economic prints. But chart rankings and streaming cou