Utah files criminal charges against prediction market platform Kalshi and its two co-founders.

On October 29, according to CoinDesk, Utah has filed criminal charges against prediction market platform Kalshi (KalshiEX LLC) and co-founders Tarek Mansour and Luana Lopes Lara for illegally promoting gambling in the state. Prosecutors filed a total of 14 counts, including one felony charge for alleged continuous illegal activity, 12 charges for promoting online gambling, and one misdemeanor gambling charge. The prosecution is based on evidence collected by an undercover investigator from the Utah Attorney General’s office.

The investigator registered on the platform in September using a local address, phone number, and debit card, and completed 12 sports bets. Days earlier, the Utah Attorney General had filed a civil lawsuit seeking to enjoin Kalshi from accepting wagers from state residents and to recover profits earned within the state. Kalshi argues that its sports event contracts qualify as financial derivatives regulated by the U.S. Commodity Futures Trading Commission (CFTC) and should not fall under state gambling laws. The CFTC has sued Utah, stating that such contracts are exclusively subject to federal regulation.