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Prediction market Kalshi has suspended the accounts of three congressional candidates for allegedly betting on the outcomes of their own races, violating the platform’s rules. The company announced that Ezekiel Enriquez in Texas, Matt Klein in Minnesota, and Mark Moran in Virginia wagered on events they could directly influence, which Kalshi’s head of enforcement called "political insider trading."
Enriquez and Klein placed bets tied to their own candidacies, with wagers under $100. Moran, who ran as an independent in Virginia’s U.S. Senate race, not only bet on his own campaign but also on a contract about who would run for office before formally announcing his candidacy. Kalshi said this made him a “direct decision maker” with inside knowledge.
Klein and Enriquez admitted to breaking platform rules and reached settlements with Kalshi, receiving financial penalties of $539.85 and $784.20, respectively, and a five-year ban from the site. Moran refused to settle and was fined $6,229.30 plus any profits from his trades. Moran stated on social media that he intentionally placed the bet "because I wanted to get caught," aiming to highlight what he sees as undue influence prediction markets have on politics. Klein, a Minnesota state senator, also posted on X that he was “curious about how it worked” but called his actions a mistake and apologized.
While Kalshi has referred more serious cases to federal authorities in the past, the company said these cases were handled internally. Politicians and industry observers have debated whether the penalties are sufficient, with some lawmakers calling for stricter regulation of political betting.
The Commodity Futures Trading Commission (CFTC), which oversees prediction markets, was not directly involved in these disciplinary actions.