Prediction market platform Kalshi has taken significant enforcement action against two high-profile cases of insider trading, resulting in multi-year bans and substantial fines. The company, which is regulated by the Commodity Futures Trading Commission (CFTC), disclosed these actions as part of a broader crackdown on market manipulation.
The first case involves Kyle Langford, a former candidate for governor of California who is now running for Congress. Kalshi's head of enforcement, Robert DeNault, stated that Langford was banned for five years and fined after betting approximately $200 on his own electoral victory in May 2025 and promoting the wager on social media platform X. Kalshi reported the case to the CFTC, noting that the account did not withdraw any profits.
The second major sanction was levied against Artem Kaptur, an editor for the popular YouTube channel MrBeast. Kalshi's surveillance systems flagged Kaptur's "near-perfect" trading success in low-probability markets between August and September 2025 as statistically anomalous. The platform, with help from other traders, identified his employment and concluded he likely had access to material non-public information. Kaptur was suspended from the platform for two years and fined roughly $20,000.
Kalshi CEO Tarek Mansour expressed support for legislation prohibiting public officials from participating in such markets. The platform has adopted regulations from the New York Stock Exchange to ensure fairness. To date, Kalshi has opened nearly 200 investigations, with over a dozen becoming active cases, and has frozen several flagged accounts. Funds from fines will be donated to educational organizations focused on derivatives markets.
These enforcement moves come amid increased regulatory scrutiny. Earlier this month, Kalshi established a surveillance audit committee and partnered with crypto trading surveillance firm Solidus Labs to better detect market abuse. CFTC Chair Mike Selig reinforced this stance, warning that the agency's new prediction markets advisory will collaborate with the industry to find and take action against insider traders.
