Kalshi Fines and Suspends Three Congressional Candidates for Trading on Their Own Elections
Prediction market platform Kalshi announced on Wednesday that it has fined and suspended three candidates for the U.S. Congress for engaging in trading activity related to their own election campaigns. The company stated it took the action for violations of rules against "political insider trading" following detection by newly implemented safeguards.
Candidates Involved
The three candidates identified by Kalshi are:
- Mark Moran: A candidate in Virginia who initially sought the Democratic nomination for the U.S. Senate before deciding to run as an independent.
- Matt Klein: A Democratic state senator running in the primary for Minnesota's 2nd Congressional District.
- Ezekiel Enriquez: A candidate who ran in the Republican primary for Texas's 21st Congressional District. Enriquez lost his primary race in early March with less than 2% of the vote.
Penalties Imposed
According to Kalshi, all three candidates were fined and suspended from the platform for five years. The specific financial penalties reported by the company are:
- Mark Moran: Fined $6,229.30. Kalshi stated that Moran traded in two markets related to his campaign, including one on individuals who would run for public office in 2026, and another after announcing his candidacy. The company reported that Moran initially acknowledged violating the rules but later stopped communicating with investigators.
- Matt Klein: Fined over $530. Kalshi stated that Klein cooperated with its investigation and reached an agreement with the company.
- Ezekiel Enriquez: Fined over $780. Kalshi stated that Enriquez cooperated with its investigation and reached an agreement with the company.
Kalshi reported that all bets placed by the candidates were less than $100.
Responses from Candidates
"I traded $100 on myself."
— Mark Moran, on social media
Moran characterized the action as an attempt to draw attention to what he considers the unjust influence of prediction markets on elections.
Matt Klein stated that his $50 wager in October was his first use of a predictions market and called it a mistake, apologizing. Klein is a cosponsor of a bill in the Minnesota Legislature to ban most wagering on predictive markets, including election outcomes. He said there is no inconsistency between his bet and the legislation, as he learned about the violation after sponsoring the bill.
Contact information for Ezekiel Enriquez was not immediately available for comment.
Regulatory and Industry Context
The fines and suspensions were imposed by Kalshi, not by the Commodity Futures Trading Commission (CFTC), which regulates prediction markets. The CFTC has not taken action in this matter.
Kalshi and Polymarket have faced bipartisan congressional scrutiny over the issue of insider trading on prediction markets. In January, an anonymous Polymarket user profited $400,000 on a bet that former Venezuelan President Nicolás Maduro would leave office. In March, after senators proposed legislation targeting prediction markets, both platforms announced rules prohibiting candidates from trading on their own campaigns.
Some politicians, including U.S. Rep. Mike Levin (D-CA), criticized the fines as insufficient, describing them as equivalent to "a parking ticket."