MrBeast Editor Banned for Insider Trading on Kalshi Markets

As the prediction market in the US keeps growing, so do concerns about participants using insider information. This week, Kalshi revealed its first high-profile enforcement actions, suspending two users for violating trading rules.

“Near-Perfect” Wins Trigger $20K Fine

The first case involves Artem Kaptur, a video editor who worked for YouTube personality MrBeast. Kaptur allegedly used non-public information to place trades in YouTube-related markets, netting abnormal gains that were flagged by Kalshi’s monitoring systems. 

The platform described his wins as “near-perfect” and statistically anomalous. Kalshi imposed a two-year suspension and a fine exceeding $20,000, which is five times the size of his trades. 

Beast Industries confirmed the incident and emphasized that the company does not tolerate misuse of proprietary information. An independent investigation into Kaptur’s actions is currently underway.

Penalties “Not Indicative of Future Actions”

In a separate case, Republican Kyle Langford, who previously ran for California governor, traded on his own candidacy despite publicly posting about it on social media. 

Kalshi barred him for five years and levied a fine more than ten times the size of his initial trade. 

Kalshi made sure to clarify that while candidates may observe markets for information, actively betting on their own races is a violation of the rules. Langford has since switched focus to a congressional campaign.

“These penalties are not indicative of future actions,” Kalshi explained. “They depend on the case, including trade amounts and rules violated.” 

The company also flagged Stephen Cloobeck, a former candidate and prominent donor, who was barred from betting on California gubernatorial outcomes after promoting trades on a friend’s campaign.

Committed to “Finding the Bad Actors, Manipulators”

The moves come amid growing scrutiny of prediction markets by federal regulators. While these markets operate under fewer rules than traditional stock exchanges, the Commodity Futures Trading Commission (CFTC) has oversight authority. 

In a statement, the CFTC’s Division of Enforcement noted it coordinates with platforms like Kalshi and may investigate or prosecute violations under the Commodity Exchange Act if needed.

Bobby DeNault, who is in charge of leading Kalshi’s enforcement efforts, made sure to reiterate the fact that no financial platform is immune to manipulation. 

“We’re committed to deterring and finding the bad actors, manipulators, and those who willingly cheat,” he said.