Kalshi bans US political candidate for insider trading as CFTC steps up prediction market scrutiny

Prediction market platform Kalshi said on Wednesday it banned a former California gubernatorial candidate for five years and fined him $2,000 after he bet on his own race in violation of insider trading rules. The same platform also penalized a YouTube editor who traded about $4,000 on creator stream markets in 2025, issuing a two-year suspension and roughly $20,000 fine, while the CFTC has created a prediction markets advisory to pursue insider trading cases.