Utah prosecutors have charged prediction market platform Kalshi and its co-founders with 13 felony counts and one misdemeanor, escalating the state's legal battle over sports betting enforcement. The indictment introduces potential prison time for company leadership as regulators clash over jurisdiction of federally regulated exchanges. The charges come amid a parallel federal challenge, with the CFTC separately suing to block Utah's enforcement actions against exchanges it considers federally regulated. The case highlights growing tension between state gambling authorities and federal financial regulators over oversight of prediction markets.