A prediction betting platform has disciplined three congressional candidates who violated company rules by placing wagers on their own election races, the company announced Wednesday.
Kalshi imposed five-year suspensions and financial penalties on the trio, marking another significant incident involving potential insider trading on prediction markets that have drawn increased attention from lawmakers calling for tighter oversight.
The company’s enforcement action targeted Mark Moran, an independent candidate seeking Virginia’s U.S. Senate seat; Ezekiel Enriquez, who competed in a Texas Republican House primary; and Matt Klein, a Democratic state legislator from Minnesota pursuing a U.S. House position.
According to Kalshi’s findings, both Klein and Enriquez wagered amounts under $100 on outcomes involving their own campaigns. Moran acknowledged on social media that he placed a $100 bet on his own candidacy.
The financial consequences varied based on each candidate’s cooperation with the investigation. Moran, who declined to negotiate a settlement with Kalshi, received the steepest penalty exceeding $6,200. Klein and Enriquez, who agreed to settlements, face fines of more than $530 and $780 respectively. The disciplinary measures represent company enforcement rather than government regulatory action.
Rather than disputing the accusations, Moran used social media Wednesday to defend his actions as a deliberate attempt to spotlight problems with prediction markets.
“We live in a Country destroyed by vice, which Kalshi directly contribute to,” Moran posted on X, explaining his trade aimed to “highlight how this company is destroying young men.”
Klein similarly acknowledged the company’s conclusions in his own social media statement Wednesday. He described his $50 October wager as his initial experience with prediction markets, driven by curiosity about their operations.
“This was a mistake and I apologize,” Klein stated, adding that the incident demonstrated the need for enhanced market regulation.
Enriquez, commonly called Zeke, was unsuccessful in his House bid, securing less than two percent of votes when his race concluded in early March. Attempts to reach Enriquez for response were unsuccessful.
