Additional Coverage:
- Kalshi says it’s punishing its first insider trader: a MrBeast staffer (businessinsider.com)
Kalshi Cracks Down on Insider Trading: MrBeast Editor and California Politician Fined and Banned
San Francisco, CA – Kalshi, the US-regulated prediction market, announced its first public enforcement actions this week, levying fines and bans against a video editor for YouTube sensation MrBeast and a California politician for engaging in prohibited trading activities.
Artem Kaptur, a video editor for MrBeast, received a two-year ban and a $15,000 fine for violating Kalshi’s insider trading rules. Kaptur reportedly wagered approximately $4,000 on YouTube streaming markets, profiting over $5,000. An internal disciplinary committee at Kalshi determined that Kaptur “traded on material, non-public information he obtained” through his employment with MrBeast.
Beast Industries, MrBeast’s company, stated it has “no tolerance” for such behavior and has launched an independent investigation. The company emphasized its “longstanding policy against employees using proprietary company information” to maintain “the integrity of our workplace and trust with our global audiences.”
MrBeast, whose real name is Jimmy Donaldson, recently shared on social media that his team invested $1 million in third-party compliance teams to ensure the fairness of “Beast Games” and other MrBeast videos. The final episode of MrBeast’s Amazon Prime Video series “Beast Games” concluded Wednesday, awarding a $5 million prize.
In a separate action, California politician Kyle Langford was banned for five years and fined $2,000. Langford had wagered $200 on his own gubernatorial candidacy and subsequently posted about it on social media. Langford is currently running for Congress.
Neither Kaptur nor Langford immediately responded to requests for comment. MrBeast also did not immediately comment on the matter.
These enforcement actions are civil penalties conducted under Kalshi’s own rulebook, which outlines investigative and hearing procedures. Earlier this month, Kalshi announced that lawyer Robert DeNault would lead its enforcement efforts.
While other financial exchanges like the New York Stock Exchange and the CME Group regularly announce similar enforcement activities, Kalshi’s actions are notable due to its membership often including ordinary individuals, not just finance professionals.
Beast Industries acknowledged the significance of Kalshi’s actions, stating, “We welcome Kalshi – and hopefully others in the space – also taking this issue seriously, but it only works if they are willing to communicate their findings, so we’re hopeful they’ll be more open to that in the future.”
Kalshi also confirmed that these two bans will be reported to the US Commodity Futures Trading Commission (CFTC), the federal body that regulates futures, swaps, and options. The CFTC has asserted “exclusive jurisdiction” over prediction markets, a stance that has previously led to conflicts with states that argue some markets constitute illegal gambling under state law.
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- Kalshi says it’s punishing its first insider trader: a MrBeast staffer (businessinsider.com)