Federal Judge Blocks Arizona Criminal Case Against Kalshi After CFTC Intervention
Key Takeaways
- Federal judge blocked Arizona's criminal case against Kalshi after CFTC intervention.
- CFTC contends Kalshi's sports contracts are financial products, seeking federal preemption.
- Ruling preserves status quo while broader preemption dispute between federal and state rules continues.
Federal Restraining Order
A federal judge issued a temporary restraining order blocking Arizona from pursuing its criminal case against Kalshi.
The CFTC intervened, arguing federal law preempts state gambling statutes.

Judge Michael Liburdi granted the order on April 10, halting Kalshi's scheduled arraignment.
CFTC Chairman Selig said Arizona's decision sets a dangerous precedent.
The case pits state gambling enforcement against federal commodity market regulation.
Divergent Death Toll Reports
Death toll estimates diverged sharply across sources.
Reuters and BBC reported at least 28 killed, while the Dhaka Tribune and Guardian cited 33.

Al Jazeera counted at least 41 bodies, significantly higher than government estimates.
Police detained factory owner Faisal Rahman as the death toll rose.
Witnesses said the factory's main exit was locked when the fire broke out.
Locked Exits and Corporate Murder
Survivors described workers pounding on locked metal doors.
Nasrin Begum said, We could hear them screaming but we could not reach them.
The Garment Workers' Federation said Rahman Textile had been cited for fire safety violations in 2024.
Federation president Akter declared, This was not an accident. This was corporate murder.
Labour Minister Tahmina Akhter pledged an immediate investigation.
European Brands Under Fire
Rahman Textile produced clothing for European brands including Hessen and BrandBox.
Both companies said they were deeply saddened and would review their operations.

Hessen's compliance team had audited the factory in March.
Clean Clothes Campaign said the audit system was fundamentally broken.
Rahman was being questioned about exits welded shut to prevent worker theft.
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