Prediction market platform Kalshi announced Wednesday that it had suspended and fined three candidates for Congress from Minnesota, Texas, and Virginia for engaging in what it called 'political insider trading' on their own campaigns.
Kalshi said in a statement that all three candidates had traded on contracts related to their own electoral prospects, violating the platform's terms of service. The company did not disclose the names of the candidates or the exact amounts of the fines, citing privacy policies.
This is the first time Kalshi has taken such action against political figures. The platform has been under scrutiny from regulators and lawmakers over the potential for insider trading in prediction markets.
