Underdog Buys Aristotle’s CFTC-Registered Exchange and Clearinghouse to Run Its Own Prediction Market
The deal gives Underdog a CFTC-regulated path to list contracts with in-house clearing.
Overview
- Underdog purchased Aristotle Exchange DCM, Inc. and Aristotle Exchange DCO, Inc., entities registered with the U.S. Commodity Futures Trading Commission.
- The acquisition enables Underdog to operate a federally compliant platform for sports and other event-based contracts rather than routing users to outside exchanges.
- CEO Jeremy Levine said the company will work with the CFTC as the exchange is built and emphasized a sports-first approach for prediction markets.
- Representatives for Underdog and Crypto.com declined to comment on how the deal affects their existing in-app prediction market partnership launched last September.
- Financial terms were not disclosed, and Aristotle was advised by Lazard on finance and Willkie Farr & Gallagher LLP on legal matters; the move follows layoffs of just over 20% as Underdog refocuses on regulated products.