Kalshi has faced backlash after closing a market betting on the ouster of Iran’s Supreme Leader, Ali Khamenei, following his assassination. While traders who wagered on his exit by February 28 anticipated payouts when reports of his death surfaced, Kalshi settled the market based on the last traded price before death confirmation due to a ‘death carveout’ in the event contract, leading to user dissatisfaction. Kalshi operates under oversight from the CFTC, requiring know-your-customer compliance, which differentiates it from unregulated platforms like Polymarket that lack safeguards against insider trading. In light of the recent events, US Senator Chris Murphy has proposed legislation to address concerns over prediction markets tied to geopolitical situations like this.
Kalshi settles market on Khamenei ouster, CEO apologizes for confusion
