Prediction-market bets tied to Iran conflict stoke backlash over suspicions of insider trading [View all]

Source: Morningstar

"Kalshi also faces a controversy surrounding its handling of a market tied to whether Iran's supreme leader would remain in his position

Traders flocked to prediction markets to place bets this weekend as global markets were closed.

This weekend was a big one for prediction markets like Polymarket and Kalshi, but allegations of insider trading and a controversy surrounding the handling of one particularly sensitive market have set off a firestorm of criticism.

With global markets closed, investors around the world turned to prediction markets, and crypto-based decentralized exchanges like Hyperliquid, to hedge risk or speculate on the outcome and market impact of U.S. and Israeli strikes on Iran. Those attacks continued on Sunday. Iran has also retaliating against U.S. assets and allies in the region.

Read more: https://www.morningstar.com/news/marketwatch/20260301139/prediction-market-bets-tied-to-iran-conflict-stoke-backlash-over-suspicions-of-insider-trading