Coinbase sent users a notification declaring that Norway had defeated Brazil 3-2 in a World Cup knockout match. The problem: the game hadn’t actually started yet.

The false alert, generated by AI, went out on July 5 while the match at MetLife Stadium in New Jersey was listed as weather-delayed on Coinbase’s own platform. It claimed Erling Haaland had scored two goals in a thriller that, at that point, existed only in the imagination of an algorithm.

Coinbase CEO Brian Armstrong responded on X, saying he was “taking a look with the team.”

When the machine hallucinates with your money nearby

Coinbase operates US-based prediction markets through a partnership with Kalshi, and World Cup contracts have been positioned as key revenue drivers during the tournament. Users can place real money on match outcomes, tournament winners, and individual player performances.

Social media reaction was swift and unflattering. Users described the incident as an irresponsible case of AI hallucination and questioned whether automated systems should be trusted with financial-grade communications. Some pointed out the irony of Armstrong’s frequent public statements championing prediction markets as superior mechanisms for determining truth.

Coinbase’s deep AI dependency

Approximately 40% of Coinbase’s daily code is AI-generated, with the company reportedly targeting more than 50% by October 2025. Engineers who resisted adopting AI tools have reportedly been let go.

What this means for prediction market traders

Polymarket continues to dominate crypto-native prediction markets, and traditional sportsbooks have decades of operational credibility. Coinbase’s pitch has been that it can combine the regulatory compliance of traditional platforms with the innovation of crypto.

As of now, no resolution or additional statements from Coinbase have been released beyond Armstrong’s initial acknowledgment.