Prediction Market News: Kalshi Fines MrBeast Associate Over Insider Trading Amid State Crackdown

Kalshi Inc., a U.S.-regulated prediction market, suspended Artem Kaptur on February 25, 2026, for insider trading tied to MrBeast contracts. The action followed trades he placed in August and September 2025 while working as a visual effects editor for James Donaldson, known as MrBeast. Kalshi said Kaptur used material non-public information and failed to cooperate with its investigation.

Prediction Market Rules Violated in MrBeast Case

According to Kalshi’s disciplinary notice, Kaptur violated Rule 5.17(y) on prohibited insider transactions. The rule bars traders with material non-public information from entering related contracts. It also restricts employees or affiliates of a source agency from trading on linked markets.

The committee found reasonable cause that Kaptur traded while affiliated with a source agency for MrBeast contracts. He allegedly used information obtained through his employment. Kalshi said this conduct breached its insider trading restrictions within the prediction market.

In addition, the committee cited Rule 3.6(a), which requires members to cooperate fully with investigations. The prediction market platform said Kaptur failed to provide the required cooperation. As a result, the committee concluded he violated both provisions.

Kalshi stated that Kaptur traded roughly $4,000 across YouTube-related markets. He earned $5,397.58 in profits from those positions. The prediction market ordered disgorgement of that amount and imposed an additional $15,000 penalty.

As a result, Kalshi suspended him from direct or indirect platform access for two years. The total financial penalty reached $20,397.58. The prediction market platform noted it would donate the fine to a consumer education nonprofit.

Beast Industries, Kaptur’s employer, addressed the matter in a statement. The company said it has no tolerance for misuse of proprietary information. It also confirmed that it launched an independent investigation.

This move comes amid a crackdown by state regulators on prediction markets, who claim these platforms are unregulated betting platforms. As CoinGape reported, the CFTC has filed an amicus brief to defend its jurisdiction over these platforms. 

Second Case Deepens Markets’ Scrutiny

On the same day, Kalshi disclosed another enforcement action involving Kyle Langford. The California political candidate reportedly wagered about $200 on his own gubernatorial campaign. He later posted about the trade on social media.

The prediction market platform said it froze his account after reviewing a video showing the transaction. According to Bobby DeNault, head of enforcement, the candidate initially acknowledged the violation. The exchange then imposed a five-year ban and a $2,000 fine, equal to ten times the trade amount.

Langford has since shifted his campaign to a congressional race. As Coingape reported, Kalshi is facing a new lawsuit as legal pressure mounts on the prediction market industry. Kalshi also confirmed that it investigated about 200 insider trading cases and currently has more than a dozen active probes. 

The disclosures come as state regulators pursue actions against prediction market platforms over alleged unlicensed betting operations. Meanwhile, the CFTC is developing rules to govern the expanding prediction market sector.