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Papaya concedes that it cannot immediately pay the $719 million judgment, arguing that allowing the company to pay the penalty over multiple years would “preserve … the rights of all parties.”
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Skillz argues in its court petition that Chapter 15, which governs cross-border insolvency proceedings involving foreign companies operating in the U.S., shouldn’t apply.
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What distinguishes Santos’ penalty is the exchange’s allegation that he actively issued false or misleading statements to alter prices and profited materially, violating additional rules such as failure to cooperate and manipulative conduct.
These breaches escalated his sanction to a permanent ban and a significantly larger fine compared to others involved.
The platform’s Rule 5.17(z), cited in all the matters, strictly prohibits trading in contracts where participants have decision-making power or can otherwise influence the underlying event, regardless of influence magnitude.