Kalshi exposes a politician and Mr. Beast editor for insider trading

Kalshi announced Wednesday it has closed and reported two cases of insider trading to the U.S. Commodity Futures Trading Commission (CFTC), one allegedly involving an editor for popular YouTuber, Mr. Beast. 

The prediction exchange said it opened 200 investigations into suspicious insider trading activities over the past year, and over a dozen of the investigations led to active cases.

On popular request, Kalshi today released information on two insider trading cases it recently closed in a bid to showcase its efforts in countering illegal trading.

Today, we are releasing information about two insider cases we recently closed.

Thank you @robertjdenault and team for leading the investigation and working with law enforcement. https://t.co/TcdmzeZw6P

— Tarek Mansour (@mansourtarek_) February 25, 2026

Mr. Beast team member banned from Kalshi

The first case involved a U.S. politician who bet about $200 on his own candidacy for Governor of California in May 2025. The candidate went on to share the trade on social media, which alerted Kalshi’s Surveillance Department and immediately got his account frozen.

According to Kalshi, politicians in a race are allowed to use the prediction exchange, but shouldn’t bet on themselves. “As a candidate in a race, you can (and probably should) follow and use Kalshi’s market forecast, but you should not trade on it,” Kalshi precisely noted. 

In the second case, the trader bet up to $4,000 on YouTube streaming markets. The culprit was identified as Artem Kaptur, who reportedly edited videos for the popular YouTuber, Mr. Beast. 

Kalshi found that the editor likely had access to material non-public information connected to his trading, which enabled him to bet with near-perfect trading success, more suspiciously, on markets with low odds, it said.

None of the traders were able to withdraw profits from the illegal bets, according to the report. The first trader was banned for five years and penalized 10 times his initial trade size, while the second trader got only a two-year ban, with a financial penalty five times the size of his initial trade size. 

The fines will be donated to a non-profit, Kalshi said.

“We’ve reported each of these cases to the CFTC, as we are required to do, and Kalshi will be donating the fines imposed to a non-profit that provides consumer education on derivatives markets,” the prediction market wrote.

Kalshi reported close to peak volumes in February

The stakes on Kalshi are higher now that it has significantly grown its monthly volumes. From the beginning of February to date, Kalshi has posted $8.5B in trades. 

Though the platform is still lagging from January’s record of over $9.5B, it still carries peak levels of monthly transactions, after exponential growth in early 2026. 

As a result, Kalshi is seen as one of the highly regulated and accurate platforms, capable of giving insights into economic issues such as interest rate decisions based on group predictions.  Sports remain the biggest source of activity on Kalshi, while Polymarket remains the venue for current events and niche issues.

Kalshi is still one of the top leading prediction platforms by volume, despite the recent crackdown on affiliate badges on X. 

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