Kalshi Faces Lawsuit Over Khamenei Prediction Market
A lawsuit alleges Kalshi improperly handled a prediction market on the removal of Iran's Supreme Leader, failing to pay out winning trades.Summary
Kalshi, a prediction market platform, is facing a class action lawsuit concerning its “Ali Khamenei out as Supreme Leader” market. Plaintiffs allege that the platform’s death carveout policy – which voided trades upon the former Iranian Supreme Leader’s death – was not adequately disclosed to users. They claim the policy was “deceptive” and “predatory,” particularly given the context of potential military conflict. Kalshi co-founder Tarek Mansour stated the platform doesn’t allow markets directly tied to death and reimbursed users based on the “last traded price” before the confirmation of Khamenei’s death, a reimbursement policy that also received criticism for its lack of transparency. Mansour maintains Kalshi adhered to its policy and that no users lost money, but the plaintiffs dispute the methodology used for calculating reimbursements. The lawsuit highlights a disagreement over the clarity and fairness of Kalshi’s market rules and disclosures.
(Source：Cointelegraph)