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Kalshi imposed a two-year ban and a financial penalty on an editor working for MrBeast who allegedly traded on nonpublic information about upcoming content, according to a Nov. 3 report from FinTech Global. The platform also suspended a California political candidate for five years after he placed trades on his own election.
The report highlighted platform sanctions and criminal charges involving alleged misuse of material, nonpublic information, urging firms to expand their employee-trading controls to cover prediction markets.
Allegations extend to military information and crypto listings
A US Army soldier has been charged with allegedly using classified information to make approximately $410,000 in prediction market profits, FinTech Global reported. Researchers also flagged more than 150 Polymarket wallets for potentially suspicious military-related trades. Those flags represent suspicions, not findings of wrongdoing.
The report also said a former White House teleprompter operator was ordered to pay more than $172,000 after trading on advance knowledge of presidential speeches.
In a separate digital-asset case, federal prosecutors in the Southern District of New York charged two Robinhood engineers with commodities and wire fraud over their alleged use of confidential knowledge of upcoming Robinhood Crypto token listings. Each allegedly made more than $50,000, according to the report. The criminal allegations are not findings of guilt.
Report urges broader employee-trading oversight
FinTech Global recommended that compliance teams explicitly address prediction markets, employee disclosures and material, nonpublic information in their policies.
It also urged firms to improve visibility into employee trading across centralized and decentralized platforms and assess risks according to employees’ roles and access to sensitive information.
The report recommended stronger surveillance, centralized case management and audit trails to monitor employee trading and conflicts of interest.
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Source: As reported by FinTech Global.
