Kalshi hit by federal probe and CFTC order to stay open as New York sues and FlightAware lawsuit is withdrawn

The Commodity Futures Trading Commission has invoked its emergency authority and directed Kalshi to continue operating while federal regulators have launched a probe into the platform’s "mention markets" after a case involving bets on President Trump’s remarks. New York Attorney General Letitia James has sued Kalshi, alleging the platform runs an illegal gambling operation in the state. FlightAware filed a lawsuit accusing Kalshi of using its flight data and trademark for betting markets, but the case was voluntarily dismissed after one day. Meanwhile, New York City officials led by Council Speaker Julie Menin have opened a formal investigation into several prediction‑market platforms, including Kalshi, over alleged deceptive marketing practices.