"We investigated and found that the trader was employed as an editor for the streamer's show and likely had access to material non-public information connected to his trading. Using confidential information to manipulate markets is prohibited by Kalshi's rules and could violate federal law."
"Kalshi investigators discovered that the trader had "near-perfect trading success" on bets about the YouTuber's videos with low odds, making the wagers appear suspicious. Many people place wagers about MrBeast on Kalshi, with people betting hundreds of thousands of dollars on what he will say in his next video."
"Kalshi said the company froze the account in question, so the user was not able to withdraw any profits. The editor was fined $20,000 and suspended from the platform for two years. The case was reported to regulators at the Commodity Futures Trading Commission, or CFTC, which oversees prediction markets like Kalshi."
Kalshi, a prediction market platform, suspended an editor working for YouTube creator MrBeast and reported him to federal regulators for insider trading. The employee traded approximately $4,000 on markets related to MrBeast's content and demonstrated suspicious "near-perfect trading success" on low-odds bets about the streamer's videos. Kalshi investigators determined the trader had access to material non-public information through his employment position. Using confidential information to manipulate markets violates Kalshi's rules and federal law. The platform froze the account, preventing profit withdrawal, fined the editor $20,000, and suspended him for two years. The case was reported to the Commodity Futures Trading Commission, marking the first public disclosure of Kalshi's market manipulation investigation results.
Read at www.npr.org
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