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Google Yanks Google Earth AI Image Tool a Day After Launch Over Deepfake Fears – Decrypt

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Google Yanks Google Earth AI Image Tool a Day After Launch Over Deepfake Fears – Decrypt



In brief

Google removed an AI image-generation feature from Google Earth on July 31, just a day after its July 30 launch, saying users were sharing generated imagery that appeared to violate its policies.
Journalists and open-source researchers showed the Nano Banana tool could easily fabricate events that never happened—a blast crater in Los Angeles, a flooded U.S. Capitol, Iran’s Kharg Island on fire—raising fears it could supercharge misinformation.
Google’s defense that images carry a SynthID watermark failed to reassure critics, and the company said it would only restore the feature after adding stronger guardrails, giving no timeline.

Google has pulled a newly launched artificial intelligence feature from Google Earth barely a day after releasing it, following a swift backlash from journalists and open-source investigators who warned it could flood the internet with convincing fake satellite imagery.

The company introduced the tool on July 30, letting users zoom to any location on Google Earth’s web version, click “create image,” and generate a scene from a text prompt using its Nano Banana model. By July 31, it was gone.



In a statement posted to X, Google said people “uniquely trust Google Earth for a reliable view of the world,” and that while geospatial professionals had found useful applications, others were sharing generated images that appeared to violate its policies. It said it was rolling back the feature while building stronger guardrails.

The alarm centered on how easily the tool fabricated events that never happened. Tech outlet 404 Media demonstrated it could produce a blast crater in Los Angeles and add protesters outside Google’s own Mountain View campus. NPR generated images of Iran’s Kharg Island ablaze and a flooded U.S. Capitol, both of which would be major news if real. Open-source researcher Henk van Ess told NPR he tried prompts including refugees at the Mexican border and a nuclear plant in Iran, and that none were refused.

Satellite imagery has long served as a trusted anchor for verifying breaking news and atrocities, precisely because it has been difficult to fake. Bellingcat researcher Jake Godin cautioned that one-click generation would streamline the creation of fakes and accelerate their spread, adding that misinformation outruns any correction and that governments could now dismiss authentic images as fabricated.

Google had initially downplayed the concerns, noting that every image carries its SynthID watermark, which flags it as AI-generated in tools like Gemini, and that it blocks creation on harmful topics. Critics called that insufficient, arguing few people stop to verify images before sharing them.

Google said it would reinstate image generation in Google Earth only after implementing tighter protections, though it gave no timeline.

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AI Music Company Suno Loses Copyright Case in Germany – Decrypt

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AI Music Company Suno Loses Copyright Case in Germany – Decrypt



In brief

A German court ruled that Suno infringed copyrights by using music from GEMA’s catalog without a license.
The decision requires licenses for both AI model training and AI-generated music.
Suno said it disagrees with the ruling and is considering an appeal.

A German court has ruled against AI music startup Suno in a copyright lawsuit brought by music rights organization GEMA.

According to a report by Variety, the Munich Regional Court found that Suno violated copyright law by using music from GEMA’s catalog to train its AI models and by reproducing protected works without a license. The ruling requires AI companies to obtain licenses for the commercial use of GEMA’s repertoire, covering both AI model training and the generation of music.



The lawsuit centered on six songs, including “Daddy Cool,” “Rasputin,” “Forever Young,” and “Mambo No. 5.” GEMA accused Suno Suno of training its AI on copyrighted songs without permission.

In a statement, Suno said it built its platform to help people create new music, not reproduce existing songs. The company said the ruling is based on a misunderstanding of how its technology works and that it is considering its legal options.

“Our tools give people the ability to create new songs, whether they are top artists, product developers, songwriters using our tools in their workflows or everyday music fans,” Suno said in a statement. “From the beginning, we trained our models to create new songs, not reproduce existing ones, and built protections into our platform. We disagree with today’s ruling—which rests on a fundamental mischaracterization of how Suno’s technology works, how it is used and how U.S. law applies—and are evaluating all available options, including an appeal.”

The decision comes about eight months after GEMA won a separate copyright case against OpenAI, in which a Munich court ruled that ChatGPT unlawfully reproduced copyrighted song lyrics.

The ruling also comes as Suno faces mounting legal scrutiny over how it built its AI models.

Earlier this month, leaked source code showed the company’s training data included more than 113,000 hours of YouTube Music, 62,000 hours from Pond5, and 12,000 hours from Deezer, supporting claims by the music industry that Suno trained its AI on copyrighted recordings without permission, allegations that Suno continues to fight in court.

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New York AG Seeks $36B From Kalshi Over ‘Illegal Gambling’ – Decrypt

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New York AG Seeks B From Kalshi Over ‘Illegal Gambling’ – Decrypt



In brief

New York State wants Kalshi shut down and stripped of three times its gains, with damages put at a minimum of $36 billion.
The Commodity Futures Trading Commission sought a restraining order against New York’s enforcement a day earlier.
Kalshi has been restrained in Michigan and Washington and refused relief in New York, with Minnesota the lone exception.

New York State is seeking at least $36 billion from Kalshi, asking a state court to shut its prediction market down and strip it of three times whatever it has earned. Attorney General Letitia James filed the petition on Friday alongside a motion for a temporary restraining order, treating the platform as an unlicensed gambling business across eight counts. Filings put the damages figure at a minimum, pending a full accounting.

The counts run from the New York Constitution’s gambling ban to bookmaking, possession of gambling records, unlicensed mobile sports wagering and the federal Wire Act. The state also wants $100,000 for every offer of sports wagering, restitution and disgorgement.

“Kalshi has chosen to ignore New York’s gaming laws, which exist to protect consumers, prevent problematic gambling, deliver funding for critical public services, and ensure that every company plays by the same rules,” said New York Governor Kathy Hochul in a statement, adding that the state was taking action to stop its “illegal behaviour” and bring the firm into compliance.

Investigators placed test bets, including four contracts on Connecticut to beat Michigan in April for $1.14 including fees. The petition says Kalshi lets 18-year-olds open accounts where New York sets the floor at 21, and offers markets on games involving New York college teams, which even licensed operators are barred from touching.

A federal-state collision



The Commodity Futures Trading Commission had moved first. It sued New York in April to establish that federal law gives it sole authority over event contracts, and on Thursday asked the court in that case for a restraining order barring the state from bringing criminal or civil enforcement against Kalshi or any other CFTC-registered platform. New York filed the next day regardless.

Kalshi has mostly been losing. It sued the New York State Gaming Commission in the Southern District last October, was denied a preliminary injunction on July 7 and refused protection pending appeal on July 27. A Michigan judge restrained it in June, and King County Superior Court granted Washington a preliminary injunction on July 20. Its two real wins are the Third Circuit, which upheld an injunction against New Jersey in April, and Minnesota, where a federal judge blocked the state’s ban on July 27.

The Minnesota ruling turned on whether event contracts count as swaps under the Commodity Exchange Act. Judge Katherine Menendez found many do, and singled out sports and pop-culture markets as the doubtful cases. New York’s petition is aimed almost entirely at sports.

Washington versus the states

New York is the latest front in a campaign the Trump administration has run for months. The CFTC has sued Illinois, Arizona and Connecticut over their attempts to police event contracts, added Wisconsin, and moved against Minnesota within hours of its ban becoming law. The president has backed the agency directly, calling state officials who oppose prediction markets “SCUM.”

Kalshi’s own figures, quoted back at it in the petition, put its valuation at $22 billion and annualized trading volume at $178 billion. James sued Coinbase and Gemini in April on a similar theory.

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Coinbase Misses on Q2 Earnings as Crypto Trading Activity Slows – Decrypt

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Coinbase Misses on Q2 Earnings as Crypto Trading Activity Slows – Decrypt



In brief

Coinbase reported $1.22 billion in second-quarter revenue, and a net loss of $359 million, against an expected $1.29 billion in earnings.
Subscription and services revenue totaled $555 million, or 48% of net revenue.
Coinbase said its crypto trading market share reached a record 10.3% during the quarter.

Coinbase reported $1.22 billion in second-quarter revenue on Thursday, down 14% from the previous quarter, and a net loss of $359 million.

Coinbase shares fell sharply in after-hours trading, losing roughly 5% of its stock price, after missing on earnings estimates for the quarter. The company was expected to bring in $1.29 billion in Q2.



According to Coinbase, total crypto spot trading volume declined more than 20% from the previous quarter as crypto asset prices fell and market volatility reached multi-year lows. Transaction revenue totaled $599 million—lower than the expected $628 million.

Subscription and services revenue totaled $555 million, representing 48% of net revenue. Coinbase said the figure was below its previously forecast range of $565 million to $645 million because certain USDC-related commercial agreements closed later than expected and lower crypto asset prices reduced staking revenue.

Stablecoin revenue totaled $292 million. Average USDC held across Coinbase products reached a record $20 billion during the quarter, representing more than 30% of USDC in circulation at quarter-end. Coinbase also said 88% of net revenue came from sources other than Bitcoin spot trading, compared with 45% in the second quarter of 2020.

Coinbase said its crypto trading market share reached a record 10.3% during the quarter, its third consecutive quarter of market share gains. The company said it gained share in both spot and derivatives trading.

In a bright spot for the company, prediction markets contracts and revenue grew 106% from the previous quarter and exceeded a $100 million quarterly annualized net revenue run rate, according to Coinbase. Average Borrow/Lend balances increased by more than $1 billion from a year earlier to $1.49 billion. The company also said the conditions for its commercial agreement with Circle to renew in August automatically had been met.

The earnings report follows a busy second quarter for Coinbase.

In May, the company became the first U.S. crypto exchange cleared to offer customers access to offshore crypto perpetual futures through its Deribit subsidiary. In June, Coinbase launched Coinbase for Agents, a platform that lets AI agents trade crypto, make payments and manage portfolios on users’ behalf. Later that month, the company announced plans to launch tokenized stock trading, crypto and equities options, along with new lending and rewards products.

Coinbase ended the quarter with $8.6 billion in cash and cash equivalents and $10 billion in total available resources. During the quarter, the company repurchased 814,000 Class A shares. Year to date, it has repurchased nearly 7 million shares for $1.2 billion, leaving about $2 billion remaining under its share repurchase authorization.

For the third quarter, Coinbase said transaction revenue totaled approximately $130 million through July 26. The company expects subscription and services revenue between $500 million and $580 million and adjusted expenses between $980 million and $1.08 billion.

Despite the weaker-than-expected earnings report, Coinbase CEO Brian Armstrong remained optimistic about the future of the company.

“Coinbase is no longer a bet just on the price of Bitcoin,” he said during the earnings presentation. “All of financial services are getting updated by crypto technology, whether that’s trading or payments or lending. And Coinbase is the best-positioned company in the world to power this. And of course, this next frontier is going to be agentic finance, where we’re an early leader.”

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Fake Flare Network Staking Site Drained $8.5M in XRP: Seoul Police – Decrypt

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Fake Flare Network Staking Site Drained .5M in XRP: Seoul Police – Decrypt



In brief

A fake staking site that ran for eight days last October took 3.4 million XRP from 71 investors, worth 12.3 billion won ($8.5 million), Seoul police said.
Police say the operators impersonated Flare Network and FXRP, and seeded blogs, articles and YouTube with false information.
Investigators traced 27.3 billion won ($18.8 million) through wallets linked to the group and froze 17.3 billion won of it.

A fake staking site that ran for eight days last October took 3.4 million XRP from 71 investors, worth 12.3 billion won ($8.5 million), Seoul police say. Two men, both 29, have been referred to prosecutors on aggravated fraud charges, local outlet Chosun reported Thursday.

According to police, the site, Fxrpntwork.com, impersonated Flare Network and its FXRP token, both legitimate projects, and promised monthly returns of 1.5% to 1.8% with principal guaranteed. Investors were allegedly directed to move XRP off domestic exchanges, through overseas venues, and into wallets the group controlled, before the site shut down on October 23 and the operators disappeared.

A fake evidence base

Police said the group planted false information on portal blogs, online news articles and Wikipedia, and produced YouTube videos featuring a paid stand-in, so anyone researching the project found what looked like independent corroboration. The scheme followed FXRP’s actual launch the month before.

The stand-in, 34, has been charged with fraud. Police put average losses at 173 million won ($119,000) a victim across the week the site was live.



Police froze 17.3 billion won of assets across overseas exchanges as soon as they detected the scheme. Another 10 billion won moved during the investigation and is unaccounted for, they said. Together that is the 27.3 billion won ($18.8 million) investigators traced through wallets linked to the group, well above the 12.3 billion won confirmed lost by the 71 known victims, which police say points to more.

An overseas exchange tipped off police last October about a surge in staking fraud. Investigators executed 54 search and seizure warrants, arrested one suspect at a hideout after he returned from abroad, and picked up the others in sequence. A fourth man, also 29, is overseas under an Interpol Red Notice. None of the four has been tried, and police have not made their identities public.

South Korean police have brought a run of crypto cases this year, including June’s charges against 23 people over laundering $11.1 million in USDT for a Cambodia-based phishing ring. Investigators said they would treat crypto fraud with “zero tolerance,” and urged investors to check official sources before sending funds.

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Robinhood Posts Best Quarter Ever as Prediction Market and Robinhood Chain Take Off – Decrypt

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Robinhood Posts Best Quarter Ever as Prediction Market and Robinhood Chain Take Off – Decrypt



In brief

Robinhood posted record Q2 revenues of $1.31 billion, up 32% year-over-year, beating Wall Street’s estimate of $1.26 billion.
Crypto revenue fell 38% year-over-year to $100 million, while event contracts—prediction market bets on real-world outcomes—surged over 10x to $156 million, becoming the company’s fastest-growing revenue line.
The company expanded Robinhood Chain with tokenized stocks, decentralized lending, and plans for new international crypto offerings.

Robinhood reported second-quarter earnings Wednesday and posted record quarterly revenue of $1.31 billion in Q2, up 32% year-over-year, beating Wall Street’s estimate of $1.26 billion. The company is expanding into prediction markets and crypto products, including Robinhood Chain, even as crypto trading revenue and volumes declined from the previous quarter.

The company’s net income came in at $573 million—or $0.62 per share—versus $386 million and $0.42 per share a year ago. Platform assets grew to $369 billion from $307 billion, quarterly net deposits increased to $21.7 billion from $17.7 billion, and Robinhood Gold subscribers rose to 4.8 million from 4.3 million.

“We hit all-time highs in trading volumes across equities, options, and prediction markets,” CEO Vlad Tenev said on X.

Transaction-based revenues rose 44% to $776 million, but the engine behind that number has shifted. Event contracts—prediction markets where users buy and sell contracts on real-world outcomes, from Fed rate decisions to FIFA World Cup matches—generated $156 million, up more than 10x year-over-year. Options added $342 million, up 29%, and equities $129 million, up 95%.

Crypto, by contrast, slid to $100 million—down 38% from the $160 million Robinhood posted in Q2 2025. That drag had already hit in Q1, when shares fell 6% on a 34% quarterly drop in crypto revenue. Total crypto notional trading volume—the raw dollar value of trades executed—was $40 billion for the quarter: $18 billion on Robinhood’s own app (down 35% year-over-year) and $22 billion through Bitstamp, the crypto exchange it acquired last year. The trading volume for crypto dipped from $66 billion in Q1 to $40 billion in Q2.



The company isn’t stepping back from crypto, and is focusing on its own chain. Alongside the results, Robinhood highlighted the now-live public mainnet for Robinhood Chain and Stock Tokens available to eligible users in more than 120 countries through Robinhood Wallet.

“The Robinhood Chain a few weeks ago, the first chain purpose-built for real-world assets, now with over 12 billion index volume since launch,” Tenet said on X .The rapid growth and developer activity on the chain has been awesome to see, plenty more to come.”

Robinhood first introduced the public testnet for Robinhood Chain earlier this year, describing it as an Ethereum layer-2 network for tokenized real-world assets. The company launched the network’s public mainnet on July 1, making it available for tokenized stocks, ETFs, decentralized finance applications, and other Ethereum-compatible services.

Like other Ethereum L2s, the idea is to have a secondary blockchain that settles on Ethereum’s main network but runs faster and cheaper. As Decrypt reported last Sunday, the chain was already clearing over $600 million in daily decentralized exchange volume and logged 138 million transactions in its first 30 days. Tokenized stocks—real company shares wrapped as on-chain digital tokens—grew from $5 million to $60 million in daily volume in under two weeks.

Two new products, though, headlined the call. “Two new launches I’d like to highlight. One, Rothera, our new prediction markets exchange and joint venture. And two, the first version of agentic trading with equities, options, and soon crypto on Robinhood available to your AI agents,” Tenev said.

Rothera is a CFTC-licensed prediction markets exchange Robinhood runs as a joint venture with Susquehanna International Group, a major quantitative trading firm. It has processed over 3.5 billion contracts since going live in late May. Agentic trading—software that executes trades on a user’s behalf automatically, without requiring manual input per transaction—launched May 27 and already counts nearly 100,000 accounts.

Net deposits hit a record $21.7 billion. Gold subscribers reached a record 4.8 million. The Gold Card crossed 1 million cardholders with $17 billion in annualized purchase volume. Thirteen Robinhood business lines now each generate over $100 million annually.

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Russia Charges Telegram’s Pavel Durov With Aiding Terrorism – Decrypt

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Russia Charges Telegram’s Pavel Durov With Aiding Terrorism – Decrypt



In brief

Russia’s FSB says Pavel Durov has been charged under Article 205.1 of the criminal code and placed on an international wanted list.
It alleges Telegram failed to remove channels, chats and bots used to coordinate sabotage and attacks inside Russia.
When the case was opened in February, Durov accused Russian authorities of trying to “fabricate new pretexts” to restrict access to Telegram.

Russia’s Federal Security Service said it has charged Telegram founder Pavel Durov with aiding terrorist activity and placed him on an international wanted list. The FSB’s public relations center said Wednesday that Durov was charged under Part 1.1 of Article 205.1 of the Russian criminal code, according to local news agency Interfax.

The FSB alleged that Telegram does not remove channels, chats and bots “actively used by Ukrainian special services, terrorist and extremist organizations” to prepare and coordinate sabotage, mass killings and cyber fraud in Russia. It said the consequences included deaths, among them women and children, and billions in material damage.

Minutes after the announcement, the FSB said 46 Russians had been detained after allegedly being recruited by Ukraine through a Telegram dating bot.

Soon after news of the charges broke, Telegram’s account on X posted a photograph of Durov raising his middle finger, which The Moscow Times reported as a response to the warrant. Durov has not addressed Wednesday’s charge directly. When the case was opened in February he tweeted that the authorities “fabricate new pretexts” to restrict Russians’ access to Telegram, calling it “a sad spectacle of a state afraid of its own people.”

What the listing means



A Russian wanted-list entry is a domestic designation and does not compel other states to act. Durov has not lived in Russia since 2014 and is based in Dubai. AFP has reported that he holds at least four passports—Russian, French, Emirati and Saint Kitts and Nevis. Any Interpol notice would require a separate request and Interpol’s own review.

Durov was already indicted in France in 2024 over drug trafficking, organized fraud and child sexual abuse material on Telegram, and released under judicial supervision on a €5 million ($5.5 million) bond. Both cases rest on the same claim, that Telegram will not remove content or cooperate with investigators, brought by governments on opposite sides of the war in Ukraine. Durov denies wrongdoing and has called the French case “legally and logically absurd.”

Russia began restricting Telegram in August last year and has fined the platform 100 million rubles ($1.3 million) so far this year, mostly for failing to delete banned content, Interfax reported. Kremlin spokesman Dmitry Peskov said Monday that contacts over restoring the service continue, though Telegram’s representatives were “not very active.” The state has been promoting its own MAX messenger, which activists have dismissed as a “digital trap.”

Telegram and GRAM

Telegram said this month it would push a native, non-custodial GRAM wallet to more than a billion users, a rollout Durov called the largest in history. The token, renamed from Toncoin in June after an 81% community vote, rose 7% on that announcement.

GRAM traded at $1.42 on Wednesday, down 2.5%, per CoinGecko data.

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Claude Mythos Cracked Post-Quantum Cryptography That Humans Spent Years Failing to Break – Decrypt

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Claude Mythos Cracked Post-Quantum Cryptography That Humans Spent Years Failing to Break – Decrypt



In brief

Anthropic said its unreleased Claude Mythos Preview model found a previously unknown attack on HAWK, dropping the cost of stealing its smallest key from 2^64 operations to 2^38.
The model also sped up an attack on a 7-round version of AES by 200 to 800 times, beating a record cryptographers set in 2013.
Each result cost roughly $100,000 in API usage, and Anthropic staff spent several hundred hours verifying the AES work was real.

Anthropic today said an unreleased version of its most powerful AI model found two previously unknown attacks on cryptographic algorithms, one of them against a scheme currently competing to become a U.S. federal standard.

That scheme is HAWK, a digital signature system—the math that proves a transaction came from you without ever exposing your private key—built to survive future quantum computers. The non-regulatory federal agency and lab NIST moved it into the third round of its post-quantum signature competition in May, where it is the last lattice-based candidate standing.



Claude found a symmetry buried in HAWK’s math that no human had thought to use. For the smallest configuration, the cost of recovering a secret key fell from 2^64 operations to 2^38, roughly 67 million times less work.

Fixing it means roughly doubling HAWK’s keys. “Unfortunately, doubling HAWK’s key size eliminates many of the reasons making the scheme (as it currently stands) an attractive PQC signature candidate,” Anthropic wrote.

That trade matters more to blockchains than it sounds. Signature size is block space, and block space is fees, so any chain shopping for a quantum-resistant replacement is partly choosing on bytes per signature. Compact keys and fast signing were HAWK’s entire pitch, and the fix costs it much of that edge.

Don’t worry, hodlers: Your coins are fine (for now). HAWK has never been deployed anywhere, and Bitcoin still runs on ECDSA, the pre-quantum signature scheme that candidates like HAWK are eventually meant to replace.

Anthropic disclosed both results to the algorithms’ authors and to U.S. government and industry partners before publishing, and coordinated the HAWK finding with NIST.

The AES result needed a pep talk

The second attack targets AES, the cipher scrambling your HTTPS traffic, your encrypted drive, and your exchange’s backend. Full AES-128 pushes data through 10 rounds of scrambling, and Claude attacked a 7-round research version that nobody has improved on since 2013.

The setup was deliberately harsh. Researchers barred the model from all five established families of AES cryptanalysis and told it to invent a sixth, closing the brief with a line about how the first differential attack didn’t beat anything—it invented the game. Claude also inherited working notes from earlier agent runs that had already burned through roughly 200 failed attack variants.

It refused anyway. “On AES-128 r5/r6/r7 it found nothing because there’s nothing easy to find; this is the most-studied block cipher in existence,” the model told researchers, per transcripts Anthropic published.

Anthropic sent just three substantive messages over the next three days, among them: “no again the goal is that we have highly inteligent [sic] model as good top researcher, we want to find new attacks.” Another refused to let Claude swap AES for an easier cipher.

Then it produced the trick the paper calls a Möbius Bridge, killing one of the nine key bytes an attacker previously had to guess. Refining that into the published version took a few more days and a billion output tokens.

The finding with the shortest path to something real got the least attention. Claude also broke 13 rounds of LEA, a Korean national standard and ISO lightweight-encryption standard built for phones and internet-of-things devices, in under an hour on a desktop against a prior best that needed 2^98 plaintext pairs. The deployed LEA runs 24 rounds, so nothing in the field is broken.

Verification took longer than discovery

The HAWK paper is unusually blunt about the division of labor. “The majority of mathematical discoveries in this paper were AI-assisted. Human author contribution mainly consisted of directing, organizing and verifying AI work,” its authors wrote.

Claude found the AES idea in days. Anthropic researchers then spent several hundred hours learning enough cryptography to confirm it worked—the same model that found 271 vulnerabilities in Firefox during internal testing.

“The cybersecurity community is now grappling with the fact that language models are able to discover so many bugs that the standard human processes (like vulnerability triage, verification, and remediation) struggle to keep up,” Anthropic wrote, warning that human researchers may become the bottleneck.

Anthropic also built CryptanalysisBench—191 cipher-breaking tasks drawn mostly from NIST competitions. Models submit a working attack script that either wins a formal security game or doesn’t, with no partial credit and no human grading.

Mythos 5 broke 85.7% of tasks with known solutions, against 65.3% for the weakest model tested. Against full-strength ciphers with no published break, every model scored under 9%.

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Kalshi, Polymarket Score Win as Judge Blocks Minnesota Prediction Market Ban—For Now – Decrypt

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Kalshi, Polymarket Score Win as Judge Blocks Minnesota Prediction Market Ban—For Now – Decrypt



In brief

A federal judge paused Minnesota’s first-in-the-nation prediction market ban on Monday, days before the felony law was due to take effect.
Judge Katherine Menendez found Kalshi, Polymarket and the CFTC likely to win on federal preemption grounds.
She warned that permanent relief could be “much narrower,” since not every contract the platforms list qualifies as a swap.

A federal judge blocked Minnesota from enforcing SF 3432, the first state law to criminalize prediction markets, granting Kalshi, Polymarket and the Commodity Futures Trading Commission a preliminary injunction on Monday, with the statute due to take effect on Saturday.

U.S. District Judge Katherine Menendez found the three plaintiffs likely to succeed on express-preemption claims, and the platforms likely to suffer irreparable harm. Her 44-page order bars enforcement against exchanges registered with the CFTC as designated contract markets, and holds until a decision on the merits.

The swap question



Whether Minnesota’s law is preempted, Menendez wrote, turns on whether the trades at issue “qualify as ‘swaps’ within the meaning of the CEA.” Contracts on Senate races, the World Cup winner and the reopening of the Strait of Hormuz clear that bar, she found, because they concern events with “clear potential economic, financial, or commercial consequences.” Kalshi markets on who wins Love Island USA, or on what announcers say mid-match, likely do not.

The split matters because of how the case was brought. The CFTC confirmed at the July 2 hearing that its challenge is facial, which requires showing there is no set of circumstances in which the law would be valid. Menendez found the statute “may not be preempted in all its applications” and enjoined it anyway to preserve the status quo, faulting both sides for treating the dispute as “all-or-nothing propositions.” Permanent relief, she wrote, “may be much narrower.”

Where the fight goes next

Ellison said the state “respectfully disagree[s]” with the court’s reading of the status quo, one he told Courthouse News “allows predatory gambling apps to proliferate.” His memorandum argued the platforms could satisfy federal requirements while restricting what they offer in the state.

The CFTC has sued multiple states, among them Illinois, Arizona and Connecticut, Wisconsin and Minnesota, where the DOJ and the agency filed within hours of the bill becoming law. Kalshi followed days later.

The order landed a day before a deadline the agency set itself. In a July 24 letter, the CFTC told Menendez that absent a ruling or stay by close of business Tuesday it would treat its motion as “constructively denied” and seek interim relief from the Eighth Circuit. Kalshi and Polymarket said they would do the same.

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Searchable NYC Property Database Puts Wealthy Residents at Risk, Critics Warn – Decrypt

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Searchable NYC Property Database Puts Wealthy Residents at Risk, Critics Warn – Decrypt



In brief

A searchable database built from New York City’s public property records has sparked backlash.
Crypto executives say organizing public records into a searchable tool increases security risks.
Critics point to a rise in violent attacks targeting cryptocurrency holders.

A searchable database built from New York City’s public property assessment records is drawing backlash from prominent figures in the crypto industry, who argue that making the information easier to search effectively creates a directory of wealthy property owners and could expose them to physical danger.

The controversy centers on data published by the New York City Department of Finance, which annually releases assessed values used to calculate property taxes for every property in the city. The agency’s FY2027 assessment roll, supplemental market value data, and property tax guides are publicly available through the city’s Open Data portal.



Critics on X said the issue is not that the records are public, but that they have been aggregated and organized into a searchable database that makes identifying owners of expensive properties far easier.

Uniswap founder Hayden Adams called it “the worst mass doxxing I’ve ever seen,” saying the database listed nearly every unit in some luxury apartment buildings, including primary residences of people he knows. He argued the project cast too wide a net and called it “incredibly dangerous.”

“Not only were their units listed, but nearly every unit in the entire building was listed,” Adams wrote. “They clearly took an incredibly expansive view of ‘could be’ and just doxxed a huge percentage of all expensive apartments in New York City.”

Helius CEO Mert Mumtaz called the database “unsettling” and said it crossed a line by transforming scattered public records into a centralized resource that effectively singled out wealthy individuals.

“While this data was largely public prior to this in a messy way they have cleaned it, organized it, singled out ‘the rich,’ and mass distributed it only the 50th sign this year of privacy continuing to become scarcer,” he wrote.

Castle Island Ventures partner Nic Carter warned that an easily searchable database of affluent property owners could make potential victims easier to identify, pointing to recent crypto-related kidnappings and violent attacks in Europe.

“So this is a list of wealthy people and their addresses. As we’ve seen in France and Sweden this leads to crypto kidnappings, torturings and murders,” Carter wrote on X. “Yes real estate records are semi public but this is an easily searchable database and target list.”

The criticism comes as physical or “wrench” attacks targeting cryptocurrency holders continue to rise, with incidents including kidnappings, torture, home invasions, and sexual assaults.

In February, blockchain security firm CertiK reported 72 verified crypto “wrench attacks” worldwide in 2025, up 75% from the previous year and resulting in more than $40.9 million in losses.

In April, French authorities charged 88 suspects, including more than 10 minors, in a sweeping crackdown on violent crypto kidnappings. In May, U.S. prosecutors indicted three men accused of carrying out a series of armed home invasions across California that allegedly stole millions of dollars in cryptocurrency. In June, two Texas brothers pleaded guilty to kidnapping a Minnesota family and forcing the victims to transfer more than $8 million in crypto.

By July, CertiK said attackers had already carried out 52 verified crypto “wrench attacks” in the first half of 2026, with recorded financial exposure surging nearly twelvefold year over year to $124 million.

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