Prediction market operator Kalshi shared details of three insider trading enforcement actions associated with its political event contracts, including one involving former reality show contestant Mark Moran.
Key Takeaways
- Prediction markets offer contracts on real-world events, including political elections.
- Kalshi’s latest enforcement actions follow the release of new insider trading safeguards.
- Two of the political enforcement actions resulted in settlements, while the third, involving Mark Moran, resulted in a disciplinary action.
On Wednesday, Kalshi shared three of its enforcement actions relative to insider trading on its platform. Kalshi said the actions were a result of the company’s newly released safeguards.
All three enforcement actions stem from the violation of Kalshi’s Rule 5.17(z) involving political event contracts. Rule 5.17(z) states that If a Trader is a decision maker, either directly or indirectly, or has any influence, directly or indirectly, no matter the scale and importance of the influence, on the outcome of the Underlying (event) of any Contract, that Trader is prohibited from attempting to enter into any trade, either directly or indirectly, on the market in such Contracts.”
In the first case, a candidate in the Minnesota Democratic Primary placed a small wager on himself. Last fall, Matt Klein, a Minnesota State Senator, bet $50 he’d win his primary race, reportedly to see how prediction markets worked. Somewhat ironically, Sen. Klein is a co-sponsor of a bill that would ban prediction markets in the state. Klein settled with Kalshi, agreeing to a fine of $539.85 and a suspension from the prediction market platform for five years.
In Kalshi’s second enforcement action, a candidate in the Republican Primary for Texas’s 21st Congressional District was also caught trading on the outcome of his own election. Ezekiel Enriquez settled with Kalshi, agreeing to pay a penalty of $784.20 and to a five-year suspension from Kalshi’s platform.
Mark Moran allegedly placed multiple trades on contracts directly associated with his run for a U.S. Senate seat from Virginia. The former "FBoy Island" reality star and investment banker apparently admitted to Kalshi that he knew the trades violated the company’s exchange rules but refused to settle.
Finally, one of the moments I’ve been waiting for.
— Mark Moran for U.S. Senate (@itsmarkmoran) April 22, 2026
YES, I did bet ~$100 on myself on Kalshi because I wanted to get caught…
After discovering potential manipulation on polymarket in the NYC mayoral race (NY Post reported on this) I realized how rife with corruption kalshi… https://t.co/9o6wgwTmv8 pic.twitter.com/WJSdHnsfRd
Kalshi’s compliance department has suspended Moran from direct or indirect access to Kalshi for a period of five years. It also imposed a penalty of $6,229.30, plus any profits that resulted from Moran’s trades.
Kalshi stated that these actions demonstrate the company’s commitment to “policing all types of unfair or improper trading” on its platform, regardless of the size of the trade.
