Prediction-market exchange Kalshi has publicly identified three political candidates it says violated rules that bar traders from betting on contests they can influence. Their names appeared in formal enforcement notices after the company first announced the cases without identifying anyone.
Kalshi earlier published a company update titled “Enforcement update: Kalshi continues crackdown on political insider trading,” saying three investigations had been completed. The company wrote: “Today, we’re releasing notices related to three enforcement investigations.” It added that “All three cases concern political insider trading and were flagged because of our newly released safeguards to block political candidates from trading on their own elections.”
It described the punishments but did not name the people involved. Public disciplinary records linked to the update identified them as Matt Klein, Mark Moran, and Ezekiel Enriquez.
Who are the alleged election candidates penalized by Kalshi?
Prediction markets appear to be pushing deeper into the worlds of politics and sport, raising urgent questions about whether they can truly guard against insider advantage. Critics warn that when candidates, campaign operatives, donors, or others with privileged access are allowed to trade on election-linked contracts, the integrity of those markets is immediately called into question.
Kalshi, for its part, says it is tightening the net. The company has stated stronger restrictions on politicians and athletes, increased automated surveillance, and improved reviews designed to identify conflicts before they can distort the market, following another two insider trading cases.
The company said the three matters showed how internal controls can identify improper activity. In its update, Kalshi said the cases demonstrated how “developing proactive engineering solutions can help identify illicit trading activity.”
Kalshi has also argued that prediction markets can function as information tools rather than gambling products. However, it depends heavily on confidence that insiders cannot profit from private knowledge or direct control over outcomes.
The three candidate cases
In the first matter, a settlement notice said Klein had “announced himself as a candidate for public office and was added as a market option for a contract on [election].” The notice continued: “As a candidate, Klein qualified as a direct decision maker for the contract and had direct influence on the outcome of the Underlying event.”
Kalshi said Klein then traded “in violation of Rule 5.17(z),” which prohibits users from trading on markets where they are a decision-maker or have influence over the outcome.
Under the settlement, Kalshi suspended Klein from direct or indirect access to the platform for five years and imposed a $539.85 financial penalty.
Klein is a Democratic Minnesota state senator and reported he admitted making a $50 wager. In a statement on X, Klein wrote: “In October 2025 I heard from friends that there was a prediction market site with wagers on my primary race. I had never wagered on a predictions market previously. I was curious about how it worked. I set up an account and bet $50 of my own funds that I would win the primary.
!I was informed in March of 2026 that this was a violation of the platform rules. In compliance with their request, I paid a penalty and agreed to be suspended from the platform. That was the only wager I have ever made on a predictions market. This was a mistake, and I apologize.”
The second case involved Mark Moran. Kalshi alleged that “in November 2025, Moran was listed as a strike for the market ‘Who will run for public office this year?’” and that he “placed ten orders in this market on November 13 and 14, 2025.”
The notice said Moran later announced his candidacy for the Democratic primary for U.S. Senate in Virginia and was then added to another market, “Virginia Democratic Senate nominee?”
Kalshi further found that “on January 27, 2026, Moran placed two trades in this market and then promoted the market generally on social media.”
According to the company, Moran admitted the issue during a call. The notice states: “Moran acknowledged that these trades were improper and in violation of the Kalshi exchange rules.” It also said he later “repeatedly refused to resolve this matter via settlement and stopped responding to further correspondence.”
Kalshi imposed a five-year suspension and “a penalty of $6,229.30, plus disgorgement of any profits that resulted from the trading connected to this action.”
On X, Moran posted a video saying he intentionally placed a $100 wager to draw attention to the platform, and seemed to be less apologetic.
The third matter involved Ezekiel Enriquez. Kalshi said Enriquez “announced himself as a candidate for public office and was added as a market option for a contract on the Texas Republican primary election for Texas’s 21st Congressional District.”
The notice continued: “As a candidate, Enriquez qualified as a direct decision maker for the contract and had direct influence on the outcome of the Underlying event.”
Kalshi said the settlement established that Enriquez “purchased less than $100 worth of contracts related to his own candidacy, in violation of Rule 5.17(z).”
He received a five-year suspension and a $784.20 fine.
Increasing pressure on safeguards
All three actions cite the same rule. Kalshi Rule 5.17(z) states: “If a Trader is a decision maker, either directly or indirectly, or has any influence, directly or indirectly, no matter the scale and importance of the influence, on the outcome of the Underlying (event) of any Contract, that Trader is prohibited from attempting to enter into any trade, either directly or indirectly, on the market in such Contracts.”
Regulators and market skeptics have long questioned whether exchanges can detect conflicted traders quickly enough.
Featured image: Zeke4Texas on Instagram / Mark Moran via X / Dr. Matt Klein via X / Kalshi
