Three congressional candidates are accused of betting on the outcome of their own elections on the prediction market Kalshi, which said Wednesday that it fined and suspended the three men from their platform for five years.
It is the latest high-profile case of alleged insider trading on prediction markets including Kalshi and Polymarket, which have brought bipartisan scrutiny from Congress and calls for stricter regulations of the websites where people can put money on just about anything.
Kalshi’s disciplinary documents named Mark Moran, who is running as an independent in Virginia’s U.S. Senate race; Ezekiel Enriquez, who ran in a Texas Republican primary for a U.S. House seat; and Matt Klein, a Democratic state senator running for a U.S. House seat in Minnesota.
Klein and Enriquez both placed bets less than $100 related to their “own candidacy,” Kalshi said. Moran said on social media that he “traded $100 on myself.”
Moran refused to reach an agreement with Kalshi and was fined the most at more than $6,200, while Klein and Enriquez did reach agreements and face penalties of over $530 and $780, respectively, the company said. All were suspended from Kalshi for five years. The agreements are with the company, and not with a government oversight or law enforcement agency.
Far from denying the allegations, Moran took to social media on Wednesday to say that he placed the bets because he wanted to draw attention to the issue.
“We live in a Country destroyed by vice, which Kalshi directly contribute to,” Moran wrote on X, saying the goal of the trade was to “highlight how this company is destroying young men.”
Klein also confirmed Kalshi’s findings in a post on social media on Wednesday. The $50 wager he placed in October was the first time he had used a predictions market, he said in a statement on X, and he was “curious about how it worked.”
“This was a mistake and I apologize,” he wrote, saying that the experience made it clear that the markets need more regulation.
Enriquez, known as Zeke, lost his House race in the beginning of March with less than two percent of the vote. Contact information for Enriquez was not immediately found to request comment.