Kalshi issues first-ever ‘insider trading’ bans to 3 candidates for betting on their own races 21%
By Lillian Mann0%
4/22/2026, 6:30:09 PM
BS Summary: This article contains 23 faulty reasoning types, including Negativity Bias, Framing Effect, and False Dilemma, with Appeal to Authority as the most egregious example at 25.5% saturation with 156 hits. Analysis detected 1,105 faulty-reasoning hits from 611 analyzed words, generating a BS Score of 35% and a BS Rank of 21% (13,362 of 16,813 articles). This article is better (less manipulative) than 79.50% of the article peer group.
Kalshi, online prediction market platforms allow people to place bets on wide-ranging subjects such as sports, finance, politics and currents events.
(Photo Illustration by Scott Olson/Getty Images)
OAN Staff Lillian Mann
6:29 PM – Wednesday, April 22, 2026
In a first-of-its-kind enforcement action, the prediction market Kalshi suspended three political candidates on Wednesday after an internal probe revealed that they had wagered on their own 2026 primary races.
These suspensions and fines represent the most aggressive enforcement actions since prediction markets surged in popularity over the last year.
According to CNN, these platforms allow users to wager on diverse outcomes ranging from sports and entertainment to global elections or even daily high temperatures.
This crackdown reflects growing concerns that the rapidly expanding industry could undermine the integrity of the U.S. electoral process.
Wednesday's crackdown represents an initial push to regulate prediction markets like Kalshi and its rival Polymarket, both of which are currently navigating how to operate without facilitating election manipulation.
This regulatory friction mirrors growing anxiety among lawmakers, who warn that million-dollar stakes on political outcomes could “incentivize interference.”
To address these risks, legislators have introduced at least two bills this year aimed at barring Commodity Futures Trading Commission (CFTC)-regulated companies from offering election-related contracts entirely.
The candidates named in regulatory filings were Mark Moran (I-Va.), Matt Klein (D-Minn.) and Zeke Enriquez (R-Texas).
Klein and Enriquez both cooperated with Kalshi's probes, according to the company.
However, Moran was fined $6,229.30.
Kalshi noted that Moran “traded in two markets related to his campaign.
The first was a market on individuals who would run for public office in 2026.
“This person placed a trade on himself in this market.
Then, once the trader announced himself as a candidate for the Democratic Primary election for Virginia U.S.
Senate, he again traded on his own candidacy.”
Additionally, all three candidates “were flagged because of our newly released safeguards to block political candidates from trading on their own election,” Kalshi wrote in a statement.
Robert DeNault — Kalshi's head of enforcement — referred to these cases as “political insider trading,” in a statement announcing the suspensions.
“When a trader violates our exchange rules, they will be subject to exchange discipline,” DeNault said.
“For more serious matters, we refer cases to the CFTC or DOJ for further investigation and prosecution, which didn't happen here.”
“Regardless of the size of a trade, political candidates who can influence a market based on whether they stay in or out of a race violate our rules,” DeNault continued.
“No matter how small the size of the trade, any trade that is found to have violated our exchange rules will be punished.”
Representative Blake Moore (R-Utah) also wrote in a statement last month, while announcing his bipartisan bill, that “under-regulated prediction markets have exposed America to needless public safety and national security risks” by letting users trade on “sensitive matters,” emphasizing elections.
Moran, however, claimed that his actions were a deliberate attempt to “get caught.”
Writing on X, he argued that he traded $100 on his own outcome with the full expectation of being penalized, adding that he was never a serious contender for the Democrat nomination.
“The attention it would create to highlight how this company is destroying young men,” he added.
“And as Senator I will go after Kalshi and impose significant penalties on them — 25% — a vice tax — to pay down our national debt.”
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