CFTC chair Mike Selig said the agency established a prediction markets advisory to help catch insider traders, warning there would be consequences.
A former contender for governor of California has been banned from Kalshi after betting on his own candidacy last year in violation of insider trading rules, the prediction market platform said on Wednesday.
According to a statement from Kalshi’s head of enforcement, Robert DeNault, the politician bet about $200 on his candidacy for governor of California and posted about it on X, leading to a five-year suspension on the prediction market platform and a $2,000 penalty.
Kalshi did not name the politician, but said he is no longer running for governor and is now running for Congress.
