Kalshi Cracks Down on Creator Economy Insider Trading
In a significant move to bolster market integrity, U.S.-regulated prediction market Kalshi has issued fines and suspensions against two users for alleged insider trading, including an employee of YouTube superstar MrBeast. As reported by CoinDesk, the platform identified a video editor who attempted to leverage non-public information regarding upcoming content performance to profit from specific contracts.
This enforcement action marks a turning point for the exchange as it seeks to validate its "event contract" model against claims of manipulation. According to Decrypt, the second individual sanctioned was a political candidate betting on their own race, highlighting the platform's increased surveillance capabilities following a recent backlog of suspicious activity reviews.
Polymarket Volumes Surge on Crypto Sleuth Speculation
While Kalshi focuses on compliance, decentralized competitor Polymarket is seeing massive volume on community investigations. Traders have poured over $7 million into markets predicting the target of an upcoming exposé by on-chain sleuth ZachXBT. Cointelegraph reports that users are currently favoring Meteora as the likely subject of the investigation, which is expected to be released on Thursday.
However, Polymarket faces new headwinds in Europe. The Dutch Authority for the Financial Markets (AFM) has ordered a Polymarket affiliate, Adventure One, to cease operations. The regulator alleges the entity offered illegal betting options on Dutch elections, as detailed in a separate Cointelegraph report.
Political Spending and Market Sentiment
Beyond the prediction platforms themselves, the intersection of crypto and politics continues to deepen. Decrypt notes that shortly after Crypto.com donated an additional $5 million to a pro-Trump PAC—bringing their total contributions to $35 million—the exchange received favorable outcomes from both the CFTC and the Treasury Department. For traders analyzing regulatory risk, tracking these political flows on predictionmarketstools.com remains essential for gauging long-term market viability.