The prediction platform Kalshi has imposed sanctions on three American politicians who placed bets on the outcomes of their own electoral campaigns.
Among those sanctioned are Minnesota Senator Matt Klein, U.S. House candidate Ezekiel Enriquez, and Virginia Senate candidate Mark Moran. They have been banned from using the platform for five years and fined.
Klein must pay $540, Enriquez $784, and Moran $6,229. The latter is also required to return all profits from his trades as he refused to cooperate with Kalshi's compliance department.
Politicians' Responses
Moran stated that he placed his bet intentionally to test the platform's response to insider trading. He also accused Kalshi of corruption and promised to take action if elected to the Senate.
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
Klein admitted to betting about $50 "out of curiosity" to understand how prediction markets work.
— Dr. Matt Klein (@DrMattKleinMN) April 22, 2026
Only later did he realize he was violating the platform's rules. Notably, Klein is a co-sponsor of a bill in Minnesota that seeks to ban betting on the outcomes of real events like elections and political decisions.
Enriquez did not comment on the incident and did not respond to media inquiries from the press.
In late February, Kalshi blocked former California gubernatorial candidate Kyle Langford, who bet $200 on his victory and posted a screenshot on X. He was fined $2,000.
At that time, YouTube editor Artem Kaptur, who collaborated with blogger James Donaldson (MrBeast), was also sanctioned.
Steps Toward Regulating Prediction Markets
On April 22, New York Governor Kathy Hochul signed an executive order prohibiting government officials from betting on prediction markets. Prior to this, Illinois Governor J.B. Pritzker had proposed a similar initiative to strengthen state ethics rules regarding prediction markets.
“Enriching oneself through betting on insider information is corruption, plain and simple. Our actions ensure that public officials work for the people they represent, not for personal gain,” Hochul stated.
She also criticized the administration of former President Donald Trump and Republicans in Congress, claiming they allowed an "ethical Wild West" to take over prediction platforms without implementing any standards to protect against insider trading.
U.S. states are actively trying to regulate the activities of such companies. In October 2025, New York authorities demanded that Kalshi cease operations, as the platform was operating without a sports betting license.
Kalshi is currently in a legal battle with Nevada, where a local court temporarily blocked its operations. Regulators consider the platform's contracts to be "illegal gambling."
Coinbase's Chief Legal Officer Paul Grewal suggested that the case could reach the U.S. Supreme Court and set a precedent for regulating prediction markets.
The questions at oral argument are an unreliable signal in predicting the leanings of a court. Either way, I stand by my longstanding prediction—the Supreme Court will resolve whether sports Ks on DCMs are swaps subject to the exclusive jurisdiction of the CFTC.
— Paul Grewal (@iampaulgrewal) April 16, 2026
Insider Trading on Polymarket
Two accounts on Polymarket were suspected of manipulation after they earned $37,000 from correct bets on anomalous temperature readings at the Charles de Gaulle Airport weather station in Paris. This was highlighted by analysts at Bubblemaps.
Did someone manipulate the weather on Polymarket? 🇫🇷
— Bubblemaps (@bubblemaps) April 22, 2026
This account made 180x on a Paris temperature market, betting just before a “glitch” at a local weather station 🧵 pic.twitter.com/TPPGyvmky3
On April 6, the temperature at the station suddenly spiked to 21°C before quickly returning to normal. The market resolved in favor of the winner, who received over $16,000.
A similar glitch occurred on April 15, when the station reported 18°C for most of the day, then jumped to 22°C before dropping back down.
Experts found that the anomalies were not corroborated by data from nearby stations. Just a minute before the spike on April 15, a trader began buying "no" bets on 18°C and ultimately made over $21,000.
Meteorologist Ruben Hallali commented to BFMTV that such temperature spikes were unlikely to occur naturally.
“It’s likely that someone familiar with sensor operations intentionally raised the temperature by two degrees at the right moment to validate the bet,” he added.
The French meteorological agency Météo France has filed a complaint with the police over suspected interference with data processing systems.
In April, the American publication More Perfect Union published an investigation into prediction markets. Journalists believe that prediction platforms exploit the economic anxiety of Americans under the guise of "democratizing finance."