Crypto.com Sued in Florida Over Alleged Illegal Sports Betting

Two California users claim the platform's 'Sports Event Trading' feature violates state gambling laws.

Published on Feb. 16, 2026

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Two California investors have filed a federal class action lawsuit against Crypto.com in Miami, Florida, accusing the company of running an illegal nationwide sports betting operation under the guise of a regulated derivatives product. The plaintiffs allege Crypto.com's 'Sports Event Trading' feature, which allows users to bet on sporting event outcomes, violates gambling laws in over two dozen states, including California and Florida.

Why it matters

The lawsuit highlights the legal gray area around cryptocurrency platforms offering products that resemble traditional sports betting, which is largely governed by state laws. The case could set an important precedent for how regulators and courts view the legality of such crypto-based gambling-like offerings.

The details

The proposed class action, filed in the U.S. District Court for the Southern District of Florida, names Crypto.com and its subsidiary Foris DAX Inc. The plaintiffs, Kamana Keohohou of Palm Springs and Nicholas Evans of Benicia, California, claim users across the country have lost hundreds of millions of dollars through Crypto.com's 'Sports Event Trading' feature, which they allege is essentially illegal sports betting packaged as a regulated derivatives product.

  • Crypto.com launched the 'Sports Event Trading' feature in December 2024.
  • In January 2025, the Commodity Futures Trading Commission said it was reviewing two self-certified event contracts and asked Crypto.com to pause trading during a 90-day review.
  • In July 2025, the California Attorney General issued an opinion concluding that daily fantasy sports games amount to unlawful sports wagering under state law.

The players

Kamana Keohohou

A Palm Springs, California resident and one of the plaintiffs in the lawsuit against Crypto.com.

Nicholas Evans

A Benicia, California resident and one of the plaintiffs in the lawsuit against Crypto.com.

Crypto.com

The cryptocurrency exchange platform that is the defendant in the lawsuit, accused of offering an illegal nationwide sports betting operation.

Foris DAX Inc.

A subsidiary of Crypto.com that is also named as a defendant in the lawsuit.

Commodity Futures Trading Commission (CFTC)

The U.S. federal agency that regulates the commodity futures and options markets, which reviewed Crypto.com's event contracts in 2025.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.