Predictions market Kalshi says it has closed two insider cases involving a former California gubernatorial candidate and an editor who worked at the popular YouTube channel MrBeast.
On Wednesday, Kalshi disclosed that it has opened roughly 200 investigations to date, with about a dozen escalating into “active cases.” The announcement comes as U.S. lawmakers increase scrutiny of potential insider trading on prediction platforms.
One case involved Artem Kaptur, an editor for MrBeast’s show, who the company said appeared to have access to material non-public information and traded on it in violation of platform rules. Kalshi said its surveillance team flagged Kaptur’s “near-perfect trading success on markets with low odds,” describing them as “statistically anomalous.” Ultimately, the firm suspended Kaptur for two years and imposed a fine of just over $20,000, according to a notice.
In a separate case, 24-year-old California Republican candidate Kyle Langford violated company rules by wagering approximately $200 on his own candidacy and then promoting the bet on social media, Kalshi said. Langford was banned for five years and was fined just over $2,000. He is now running for a congressional seat.
Kalshi said it will continue to publicly disclose its cases and that it has reported cases to the Commodity Futures Trading Commission. Fines will go to a non-profit that educates consumers on derivatives markets, the firm said.
Prediction markets under the spotlight
Prediction markets like Polymarket and Kalshi have grown in popularity over the past year, especially during the 2024 election cycle, as they allowed people to use crypto wager on the outcomes of specific races, including who would be president.
Last month, lawmakers raised alarm bells after a Polymarket account wagered that Venezuelan President Maduro would be “out” by the end of this month, netting $400,000, sparking concerns of inside information. Democratic Rep. Ritchie Torres introduced a bill to ban federal elected officials, political appointees, and executive branch employees from making bets on prediction markets involving “government policy, government action or political outcome.”
Kalshi CEO Tarek Mansour has expressed support for the bill and said that his company adopts insider trading regulations from the New York Stock Exchange and Nasdaq, barring users from trading if they have access to non-public information on a market.
“No system is perfect,” the company said on Wednesday. “No financial exchange is immune from bad actors. Not stock exchanges, not banks, not prediction markets. We’re committed to deterring and finding the bad actors, manipulators, and those who willingly cheat.”
MrBeast and Langford did not immediately respond to requests for comment.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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