Kalshi suspends MrBeast editor, reports insider trading

Kalshi alleges prediction market insider trading; MrBeast editor fined, suspended

Kalshi alleged that Artem Kaptur, a video editor for YouTube creator MrBeast, engaged in prediction market insider trading on contracts tied to the star. As reported by TechCrunch, the exchange froze Kaptur’s account before any profits could be withdrawn, imposed a $20,397.58 penalty (including roughly $5,397.58 in disgorged gains and a $15,000 fine), and suspended him for two years.

The company reported the matter to the federal derivatives regulator, and MrBeast’s organization, Beast Industries, bars employees from participating in MrBeast-related prediction markets, with an internal review underway, as reported by KPBS. Kalshi’s enforcement move is one of two insider-trading cases the platform recently disclosed.

Why CEA Section 6(c)(1) and CFTC Regulation 180.1 apply

According to the Commodity Futures Trading Commission, trades attributed to Kaptur in August–September 2025 using non-public information on a regulated venue violate Section 6(c)(1) of the Commodity Exchange Act and Regulation 180.1(a)(1) and (3). The advisory further clarifies that the agency retains full authority to prosecute misconduct on any Designated Contract Market, including insider trading, manipulation, or fraud.

In plain terms, Section 6(c)(1) is the CEA’s broad anti-manipulation provision, modeled on the “manipulative or deceptive device” standard, while Regulation 180.1 prohibits fraud-based schemes, deceptive practices, and material misstatements or omissions in connection with commodities and derivatives. Together, they give the derivatives regulator latitude to pursue insider-type conduct on prediction markets operating as regulated exchanges, even though these are not securities platforms.

MrBeast’s organization has emphasized that workplace standards align with this legal framework and platform rules. “No tolerance for this behavior,” said Beast Industries in a statement.

Immediate impact: account frozen, $20,397.58 fine, two-year suspension

Kalshi’s actions mean Kaptur cannot trade on the platform for two years, cannot access the flagged profits, and faces a five-figure monetary penalty that includes both disgorgement and a civil fine. The exchange has said it referred the matter to the federal regulator, so platform sanctions could be followed by agency enforcement at the regulator’s discretion.

The platform’s disclosure of two insider-trading cases signals more robust surveillance and reporting expectations for users who trade on events tied to creators, companies, or public figures. Whether further actions occur will depend on the regulator’s assessments under the anti-fraud and anti-manipulation provisions described above.

Compliance checklist to avoid prediction market insider trading

• Do not trade on material, non-public information relating to markets you access through employment, contracting, or privileged relationships.
• Avoid trading on prediction markets tied to your employer, clients, productions, or projects; implement internal “restricted lists.”
• Use blackout periods and pre-clearance for staff who might access sensitive production schedules, announcements, or outcomes.
• Maintain written policies that reference Section 6(c)(1) of the Commodity Exchange Act and CFTC Regulation 180.1, and train personnel accordingly.
• Establish information barriers between content/production teams and any trading activity; document access controls and approvals.
• Rely only on broadly disseminated public information; when in doubt, wait for official public release before trading related markets.
• Keep audit trails of communications and trading activity; promptly escalate suspected violations to compliance leads.
• Follow platform rules and report suspicious behavior; regulated venues may freeze accounts and refer cases to authorities.
• Consult qualified counsel or compliance professionals when markets implicate your work, endorsements, or confidential timelines.
• Refrain from posting trade rationales that disclose or imply access to non-public information.