PredictIt, several of its traders and academic users, and technology provider Aristotle International have filed a lawsuit seeking to block the Commodity Futures Trading Commission (CFTC) from shutting down the popular election betting site.
The lawsuit was filed on Sept. 9 in U.S. Federal District Court for the Western District of Texas. It asks the CFTC to justify its August order to close the site for U.S. users by Feb. 15, which the CFTC said was because administrators hadn’t complied with the agency’s requirements for running the site.
“The CFTC action taken on Aug. 4, 2022, threatens to harm not only the value of modest investments of more than 80,000 PredictIt traders, but the quality of the anonymized data used by more than 200 academic researchers and university educators,” Aristotle wrote in an email to PredictIt traders. Aristotle is the contract service provider for PredictIt.
The CFTC declined to comment on the lawsuit.
UPDATE (Sept. 15, 16:43 UTC): Adding CFTC's decline to comment.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.