Crypto.com and Novig sue Missouri over cease-and-desist orders

sue Missouri — Crypto.com and prediction market platform Novig have filed lawsuits against Missouri regulators after the state issued them cease-and-desist orders.

According to court records reviewed by The Block, four other firms that received similar orders have not yet filed suits. These firms include prediction markets Kalshi and Polymarket, along with Robinhood and sports-betting platform Underdog.

The legal action challenges the Missouri Secretary of State’s enforcement division, which alleged the platforms were offering unregistered securities. The lawsuits mark a direct confrontation between crypto-native companies and state regulatory authorities over the classification of their offerings.

The decision by Kalshi, Polymarket, Robinhood, and Underdog to hold off on litigation suggests a potential divergence in legal strategy among the targeted companies as they navigate regulatory pressures.