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Kalshi suspends two users and fines them over insider trading

Enforcement & compliance

Kalshi said it suspended two users after investigations found trading violations involving inside information. It fined Artem Kaptur more than $20,000 and suspended him for two years; Kyle Langford received a fine of more than $2,000 and a five-year ban after trading about $200 on his own California governor race. Kalshi said both cases were reported to the US Commodity Futures Trading Commission.

The sanctions show how Kalshi applies its trading rules to users linked to entertainment and political markets.

Earlier fines and penalties by CFTC and Commodity Futures Trading Commission

DateCompanyAmountStoryAppeal status
KalshiNot statedNevada seeks court order to block Kalshi sports contractsNot stated
KalshiNot statedNevada Gaming Control Board files enforcement action against KalshiNot stated
CoinbaseNot statedNevada Gaming Control Board seeks to block Coinbase sports contractsNot stated
PolymarketNot statedNevada court bars Polymarket event contracts for at least two weeksNot stated
PolymarketNot statedNevada judge restricts Polymarket access for 14 daysNot stated

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Regulation

CFTC enforcement director distinguishes exchange rules from federal insider-trading law

CFTC enforcement director David Miller said at a New York conference that trading on information about one’s own involvement in an event would not necessarily breach federal insider-trading law, though it could violate an exchange’s rules. He said misuse of confidential information may breach a duty, while false statements intended to influence contract prices could amount to market manipulation.

Trading on information about one's own involvement in an event would not necessarily breach federal insider-trading law, though it could violate an exchange's rules, CFTC enforcement director David Miller said at the NEXTPredict conference in New York on Thursday. Asked whether former Venezuelan president Nicolás Maduro could legally have bought a contract predicting his own capture after seeing approaching US military helicopters, Miller said such a trade might breach exchange rules without breaking federal law.

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