US prediction market Kalshi has fined and suspended two users for insider trading violations, marking its first public enforcement actions as the industry faces growing scrutiny.
The company said it opened 200 investigations over the past year into potential rule breaches.
MrBeast Editor Fined $20,000
Kalshi fined Artem Kaptur, a video editor for MrBeast, more than $20,000 and suspended him for two years after detecting what it called “near-perfect” trading wins based on material, non-public information.
The case was reported to the Commodity Futures Trading Commission.
Candidate Banned for Betting on Own Race
Former California gubernatorial candidate Kyle Langford was fined over $2,000 and banned for five years for placing bets on his own election, which violates platform rules.
Industry Under Pressure
Prediction markets like Polymarket have grown rapidly, especially during major political events.
While insider trading is clearly illegal in stock markets, regulation in prediction markets remains less defined, increasing pressure on platforms to enforce compliance.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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