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$4B Crypto Network, Kalshi Under Fire & Infantino's Retreat
Sunday, August 2, 2026
Happy Sunday everyone!
A Reuters investigation has uncovered a $4 billion Iranian crypto network allegedly linked to illicit gambling, New York is taking prediction market giant Kalshi to court over claims of illegal gambling, and Gianni Infantino has been forced to abandon FIFA's controversial $20 billion investment plan. Three stories showing how regulators, governments and institutions are tightening scrutiny over finance, betting and global sport.
Markets
EGX30 | 53,442.20 | Closed |
DFMGI | 5,809.31 | Closed |
ADX | 9,872.58 | Closed |
Tadawul | 10,589.72 | Closed |
Infantino Retreats as Backlash Kills FIFA's $20 Billion World Cup Plan
What Is It About
FIFA President Gianni Infantino has scrapped plans for a $20 billion World Cup commercial venture after fierce opposition from UEFA, the Asian Football Confederation (AFC) and other regional football bodies. The proposal would have sold a 20% stake in a new commercial company to private investors, including Joshua Kushner-led Thrive Eternal, while FIFA retained majority ownership.
Why It Matters
The reversal marks one of the biggest governance setbacks of Infantino's presidency. AFC president Sheikh Salman bin Ebrahim Al Khalifa argued the proposal lacked proper consultation and warned decisions of such significance "should never be rushed," highlighting growing resistance to private capital reshaping global football.
What’s Next
Infantino says he will work to rebuild consensus after admitting the proposal had created divisions "no longer in the interest of the objective." Meanwhile, attention is shifting to next year's FIFA presidential election, with Politico reporting European officials are discussing PSG president Nasser Al Khelaifi as a potential challenger.
Iran Gambling Network Helped Channel $4 Billion Through Crypto Exchange: Reuters
What Is It About
A Reuters investigation found an illicit Iranian gambling network allegedly channelled at least $4 billion through Shelbit, an unlicensed cryptocurrency exchange registered in Dubai and reportedly run by an expatriate Iranian. Reuters said the network processed funds from thousands of Persian-language gambling websites and interacted with wallets linked to sanctioned exchange Nobitex and Iran's central bank.
Why It Matters
The findings highlight growing concerns over the use of cryptocurrency to move illicit funds across borders, raising fresh questions around anti-money laundering, sanctions compliance and oversight of digital asset platforms. The case also underscores the increasing intersection of cybercrime, financial networks and regional geopolitics.
What’s Next
The investigation is likely to intensify scrutiny from regulators and law enforcement over crypto exchanges, sanctions enforcement and cross-border financial flows. Market participants will also watch for any official responses from the companies and individuals named in the Reuters report, as well as potential enforcement actions.
New York Sues Lebanese-Founded Kalshi in Prediction Markets Showdown
What Is It About
New York Attorney General Letitia James has sued Kalshi, the prediction market platform co-founded by Lebanese entrepreneur Tarek Mansour, accusing it of operating an illegal gambling business. The lawsuit seeks to halt Kalshi's operations in New York, recover alleged illegal gains and impose financial penalties. Kalshi says it is a federally regulated event contracts exchange, not a gambling platform.
Why It Matters
The case could become a landmark test for the fast-growing prediction market industry. Regulators argue platforms like Kalshi are gambling businesses, while the company says it operates a regulated financial marketplace. The outcome could reshape how event-based trading is regulated across the United States.
What’s Next
Kalshi has vowed to fight the lawsuit, arguing states cannot shut down a federally regulated exchange. The company already faces legal challenges in several US states, making this a closely watched battle over the future of prediction markets.
👨💻From Smashi Business’ Desk
Dreamers: HH Sheikh Mansour bin Zayed Al Nahyan bought Manchester City for £200 million and transformed it into one of football’s greatest dynasties.
Egyptian billionaire Naguib Sawiris has come to the defence of UAE businessman Mohamed Alabbar
UAE Billionaire Al Habtoor Urges Iran to Apologise, Warns Gulf Will Bear Cost of War
Saudi Arabia’s oil lifeline is facing a new threat - at Bab el Mandab
The world’s first Arab pitmaster, who founded Mattar.ae Third Culture Barbecue in 2015, has announced a tallow-based skincare product and handcrafted high-protein steak chips.
🔍In other news…
Former Lebanese Central Bank Governor Riad Salameh Arrested
Karen Wazen Launches Limited Edition Collection With Saie
Lebanese Lawyers Sue Banker Antoun Sehnaoui Over Netanyahu Meeting
Kuwait Pauses New Freelance Business Licenses Pending Regulatory Overhaul
Dubai Now Has More Than 80,000 Millionaires
Disneyland Abu Dhabi Could Transform Tourism Across the Gulf
🦄 World of Startups
ChatFeatured, Canada-based AI startup, raised $2M in a pre-seed funding round from BY Venture Partners (UAE/Lebanon) and other global investors
Doctorbook, Syria-based healthtech platform, raised $16K in a pre-seed funding round from a group of angel investors, valuing the startup at $200K
Carbar, Australia-based car subscription platform, is merging with Carasti, UAE-based car subscription business operating across the UAE, Saudi Arabia, Thailand, and Singapore, at a combined pre-raise valuation of $74M
Fincart, Egypt-based eCommerce enablement platform, raised $2.8M in a seed funding round
