Kalshi fined a MrBeast editor for insider trading
Kalshi, one of several online prediction markets that have exploded in popularity in the last few years, has suspended one of YouTube MrBeast's video editors for insider trading, NPR reports. Besides being suspended from the platform for two years, Kalshi says the editor will also be required to pay a financial penalty that's five times his initial trade size.
The editor, Artem Kaptur, traded in markets related to YouTube and specifically, MrBeast. Kalshi says his transactions were initially flagged because of his "near-perfect trading success on markets with low odds, which were statistically anomalous." Because trades are public on Kalshi, multiple users also flagged the trades as suspicious. Kalshi learned Kaptur was an employee of MrBeast during its investigation and determined he "likely had access to material non-public information connected to his trading." Perhaps unsurprisingly, trading with insider information violates Kalshi's rules.
Kalshi says that it reported the insider trading to the Commodity Futures Trading Commission (CFTC) and plans to donate the over $20,000 Kaptur has been fined to "a non-profit that provides consumer education on derivatives markets." In a statement provided to NPR, Beast Industries, MrBeast's production company, said it has a zero-tolerance policy for insider trading. "We have a longstanding policy in place against employees using proprietary company information in order to safeguard the highest standards and ethics throughout our organization," Beast Industries said.
Separately, Kalshi has also suspended and fined a politician who was running to be Governor of California. "In May, our Surveillance Department saw an online video by a candidate for Governor of California that appeared to show him trading on his own candidacy," Kalshi says. "We immediately froze his account and opened an investigation. The candidate was initially cooperative and acknowledged that this violated the exchange rules. As a candidate in a race, you
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