Kalshi Enforces First Insider Trading Bans
Regulated prediction market exchange Kalshi has executed its first public enforcement actions against users accused of trading on non-public information. On Wednesday, the platform revealed it had penalized a U.S. political candidate and an employee of YouTube superstar MrBeast for alleged insider trading violations. According to Decrypt, the exchange fined and suspended the MrBeast editor for placing bets on video outcomes they had direct knowledge of.
The crackdown comes as federal regulators sharpen their focus on market integrity. CFTC Chair Mike Selig stated that the agency has established a prediction markets advisory specifically designed to catch insider traders, warning that there would be consequences for bad actors. As reported by Cointelegraph, the political candidate—who remains unnamed—was also booted from the platform for attempting to profit from inside knowledge regarding their own campaign activities.
Polymarket Volume Hits $7M on Crypto Investigations
While Kalshi focuses on enforcement, decentralized competitor Polymarket is seeing massive volume on community investigations. Users have wagered over $7 million betting on the outcome of an investigation by crypto sleuth ZachXBT. Cointelegraph reports that market sentiment currently favors "Meteora" as the target of the upcoming reveal, expected later today.
As the sector grows, traders utilizing prediction market tools are watching regulatory boundaries closely. In Europe, Dutch regulators have ordered Adventure One, a Polymarket affiliate, to cease operations for allegedly offering illegal bets on Netherlands elections, according to a recent regulatory order.
Bitcoin Bearish Sentiment Spikes
Market sentiment on Polymarket has also turned notably bearish regarding the broader crypto economy. Following a drop in Bitcoin's market cap to $1.31 trillion, bettors are pricing in a 72% chance that Bitcoin will fall below $55,000, signaling a sharp decline in confidence among prediction market participants.