Kalshi faces class action over $54M bet on Iran leader’s departure

Prediction market platform Kalshi is facing a proposed class action lawsuit filed in the Central District of California by traders related to a market on whether Iran’s Supreme Leader Ali Khamenei would leave office. The market generated about $54 million in trading volume before being halted following reports of US and Israeli airstrikes on Iran. The lawsuit alleges that Kalshi failed to clearly disclose a "death carveout" until after reports of the strikes began circulating, yet allowed trading to continue on February 28, encouraging "yes" bets that plaintiffs claim were guaranteed to not pay out under the platform's rules. Kalshi CEO Tarek Mansour stated the platform does not offer markets tied to a person's death and later announced the company would reimburse traders for fees and net losses out of pocket, while updating disclosure practices for similar contracts. The plaintiffs seek damages and restitution, alleging breach of contract and violations of California law.

(Source：Crypto Briefing)