Kalshi Faces Lawsuit Over Khamenei Prediction Market
Kalshi is being sued in a class action lawsuit over a prediction market on the removal of Ali Khamenei, alleging undisclosed rules and unpaid winnings.Summary
A class action lawsuit has been filed against prediction market Kalshi, claiming the platform did not properly disclose a “death carveout” in its “Ali Khamenei out as Supreme Leader” market and failed to pay out winning trades. Plaintiffs argue the carveout policy, which voided trades upon Khamenei’s death, was “deceptive” and not clearly communicated to users. 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,” a methodology also criticized for lack of transparency. Mansour maintains Kalshi adhered to its policy and that no users lost money, but the plaintiffs characterize the policy as “predatory” and an unfair business practice, especially given the anticipated circumstances of Khamenei’s potential removal from power.
(Source：Cointelegraph)