"Kalshi explained it caught him due to 'his near-perfect trading success on markets with low odds, which were statistically anomalous.' The company added that it had also received tips from other users on its platform, and found he had access to inside information as an editor of a MrBeast YouTube show."
"Kalshi also suspended Kaptur for two years and imposed a penalty of $20,397.58, using a power granted by the Commodity and Futures Trading Commission for exchanges to impose fines on customers. In the case of the gubernatorial candidate, described as a Nazi sympathizer by a Catholic publication, Kalshi imposed a 5 year ban and a $2,246.36 fine."
"Kalshi, which said it plans to donate the fines to a non-profit that provides education about derivatives, also announced it has opened 200 insider trading investigations in the past year, and frozen numerous accounts."
Prediction markets have surged in popularity as betting platforms for real-world events, but insider trading has become a significant problem. Kalshi, a major prediction market exchange, recently concluded investigations into two insider trading cases. One involved Artem Kaptur, a MrBeast employee who profited over $5,000 betting on YouTube streaming milestones using inside information from his editorial role. Kalshi detected his suspicious trading pattern through statistically anomalous success on low-odds markets and user tips. The second case targeted a California gubernatorial candidate. Kalshi imposed a two-year suspension and $20,397.58 fine on Kaptur, and a five-year ban with $2,246.36 fine on the candidate. The platform reported opening 200 insider trading investigations annually and plans to donate collected fines to derivatives education nonprofits.
Read at Fortune
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