"Two California investors are taking Crypto.com to federal court in Miami, Florida, accusing the company of running what they describe as a nationwide sports betting business under the cover of financial trading. The proposed class action, filed in the U.S. District Court for the Southern District of Florida, names North American Derivatives Exchange Inc., which operates as Crypto.com, along with Foris DAX Inc. The lawsuit claims users across the country have lost hundreds of millions of dollars through the platform's sports event contracts."
"Kamana Keohohou of Palm Springs and Nicholas Evans of Benicia say the company's "Sports Event Trading" feature is, in reality, straightforward sports gambling packaged as a regulated derivatives product. Crypto.com rolled out the feature in December 2024, giving users the option to purchase "event contracts" linked to the outcome of sporting events. The company has marketed the offering as a "CFTC-regulated derivatives product" and told users they can "[t]urn correct predictions into profit with Sports Event Trading, now available across the US,""
"According to the lawsuit, the mechanics look no different from a typical sportsbook. Users answer "yes" or "no" to questions such as which team will win. A correct pick earns a set payout, while a wrong one means the user loses the price paid for the contract. The plaintiffs also point to the company's own learning materials. In a glossary aimed at new users, Crypto.com explains: "[w]hen you buy a contract on Predict, you're essentially placing""
Two California investors filed a proposed federal class action in the U.S. District Court for the Southern District of Florida naming North American Derivatives Exchange Inc. (operating as Crypto.com) and Foris DAX Inc. The lawsuit alleges that Crypto.com's Sports Event Trading functions as straightforward sports gambling marketed as a CFTC-regulated derivatives product. The platform's event contracts let users answer yes-or-no outcome questions, with correct picks yielding set payouts and incorrect picks losing the contract price. Plaintiffs allege nationwide losses of hundreds of millions of dollars and assert violations of California and Florida law, seeking class status and RICO claims.
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