Coinbase Blames Kalshi for Prediction Market Snafu

A prediction market snafu on Kalshi led to an error in settlement payouts on Coinbase, affecting customers who bet on Michigan's win over Western Michigan. The issue arose when officials restored one second of play, giving Michigan another chance and changing the result.

Coinbase initially apologized for the 'issue with the settlement' and manually recalculated balances for affected accounts. In a statement, Coinbase pointed directly at Kalshi, saying an erroneous settlement by Kalshi led to certain positions being underpaid.

The crypto company plans to credit affected customers with the full amount their winning positions should have paid. Customers who received money due to the original incorrect result will be allowed to keep it, while payouts already made under the original incorrect settlement will stand.