Kalshi Cracks Down on Insider Trading, Penalizes MrBeast Editor and Political Candidate

Kalshi, a leading U.S.-regulated prediction market platform, has taken decisive action against insider trading on its exchange, suspending and fining two users for violating its rules. The company, which operates as a designated contract market under the Commodity Futures Trading Commission (CFTC), revealed it currently has more than a dozen active insider trading cases out of 200 investigations conducted to date.

One of the resolved cases involved Artem Kaptur, a visual effects editor working for MrBeast, the online persona of YouTube star James Donaldson. According to Kalshi, Kaptur placed approximately $4,000 in trades related to outcomes tied to the reality competition show “Beast Games,” leveraging non-public information. As a result, Kalshi suspended him from the platform for two years and imposed a fine exceeding $20,000. Beast Industries, MrBeast’s parent company, stated it maintains a strict policy against employees using proprietary information and has launched its own independent investigation into the matter.

In a separate case, Kyle Langford, a political candidate who reportedly wagered $200 on his own California gubernatorial bid and promoted it on social media, received a five-year ban and a penalty totaling 10 times his trade amount. Langford is now running for Congress and has not publicly commented.

The CFTC issued an advisory highlighting that exchanges like Kalshi serve as the first line of defense against market manipulation and insider trading in prediction markets. CFTC Chairman Mike Selig emphasized that the agency can investigate and prosecute violations when necessary.

As prediction markets expand globally, regulatory oversight remains a challenge. Kalshi CEO Tarek Mansour recently stated the company uses enforcement mechanisms similar to traditional stock exchanges and is committed to working with regulators to clarify insider trading standards in evolving event-based markets.