"In the case of the political candidate, Kalshi cited a video posted online "that appeared to show him trading on his own candidacy." Kalshi froze the candidate's accounts and reported the activity to the Commodity Futures Trading Commission, the government agency that oversees prediction markets. It instituted a five-year ban and is fining the account a penalty 10 times the size of the initial trade, which Kalshi says it intends to donate to charity."
"In May 2025, Langford posted a video to X showing a screen recording of a trade order placed on Kalshi for an event in the governor's race. Shortly after the incident, Kalshi confirmed that it was looking into Langford's activities. In his description of the investigation into the candidate, DeNault notes that Kalshi began its investigation that May."
Kalshi, a prediction market platform, suspended two users for alleged insider trading violations. A former 2026 California gubernatorial candidate was banned for five years after trading on his own candidacy, with surveillance flagging suspicious behavior shown in a posted video. The candidate, identified as Kyle Langford, subsequently dropped out of the governor's race and launched a congressional campaign. Kalshi reported the activity to the Commodity Futures Trading Commission and imposed a penalty ten times the initial trade amount, designated for charity. A popular YouTuber was also removed for similar violations. Langford disputed the incident, characterizing it as a campaign gimmick rather than serious misconduct.
#insider-trading #prediction-markets #regulatory-enforcement #political-candidates #platform-moderation
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