Kalshi busts insider trading by MrBeast editor…2-year trading ban and $20,000 fine

Kalshi, a U.S. prediction-market platform, sanctioned an employee affiliated with prominent YouTuber MrBeast on allegations of insider trading.

According to CoinDesk on the 25th (local time), Kalshi said it had detected insider trading on its platform and disciplined two users. One of them was identified as Artem Kaptur, a video editor at Beast Industries, which is run by MrBeast—whose real name is James Donaldson.

Kalshi said Kaptur entered into contracts worth $4,000 based on outcomes related to “Beast Games,” a production he was involved in. The company imposed a two-year trading suspension and fines of more than $20,000.

Beast Industries said in a statement, “We do not tolerate this kind of behavior from participants or employees,” adding that it has strict internal rules to prevent staff from using proprietary company information. It also said it has already launched an independent investigation into the matter.

Another user, Kyle Langford, received a five-year trading ban and a fine equivalent to 10 times the wager amount for betting $200 in connection with his run for California governor and posting it on social media.

Kalshi said it has reviewed 200 suspicious trades, with at least 12 linked to insider trading. The company said it can levy fines at a level aimed at preventing recurrence in line with its internal rules.

The U.S. Commodity Futures Trading Commission (CFTC) also issued an advisory the same day, saying the matter could potentially violate U.S. law. CFTC Commissioner Mike Selick stressed that “the first line of defense against insider trading in prediction markets is the exchange,” adding that it will take action in cases of market manipulation, fraud, or attempted insider trading.

Kalshi is a CFTC-registered designated contract market, and as discussions over a regulatory framework for prediction markets gain momentum, responsibility for insider-trading controls is emerging as a key issue.