An editor for the YouTube streamer MrBeast and a former California governor candidate are the first two people revealed by prediction market Kalshi to face disciplinary actions for insider trading.
The company said it had opened 200 investigations into potential violations of its trading rules over the past year - over a dozen of which have become “active cases”.
Prediction markets have surged in popularity in the US, with companies like Kalshi and Polymarket letting users bet on everything from sports to politics. But concerns about wagers placed on inside information have proliferated.
Kalshi said it suspended the two users accused of violating its rules.
Is this even technically illegal? They’ve done so much to separate themselves from being classified as what they should be classified as that… Insider trading involves corporations and securities, so like what laws are they actually breaking on paper?
Probably not any laws, but the term and and conditions of those sites. When you sign up you probably agree not to use insider knowledge, or whatever.
If that’s enforceable, and if they have a case, I do not know.