Kalshi Faces Lawsuit Over Market Resolution for Iranian Leader’s Death
- Kalshi is being sued in California for its handling of a prediction market regarding the unseating of Ayatollah Ali Khamenei.
- The lawsuit claims Kalshi used a “death carveout” provision, resolving the market based on the last traded price instead of paying out $1 per “yes” share.
- Plaintiffs argue that Kalshi did not adequately disclose this rule, affecting their expected payouts.
- Kalshi CEO Tarek Monsour stated that markets directly tied to death are avoided to prevent profiting from such events.
- The market generated over $54 million in trading volume, with plaintiffs holding around $259.84 worth of positions.
Kalshi is under scrutiny for its decision to apply a “death carveout” provision in a prediction market concerning Ayatollah Ali Khamenei’s leadership status, leading to a class action lawsuit filed in California. The plaintiffs claim they were misled about potential payouts due to insufficient disclosure of this rule.
Despite the controversy, Kalshi maintains it adhered to its rules and reimbursed all fees and net losses, asserting no trader lost money on the platform during this event (Source).
