Prediction market platform Kalshi (Kalshi) faces a class-action lawsuit for not clearly posting a “death clause” in a market covering whether former Iranian supreme leader Ali Khamenei would step down, Cointelegraph reported on March 7. Plaintiffs said the clause was not properly disclosed to users. They said winning traders did not receive payouts as a result.
Kalshi voided trading in the market after Khamenei’s death and did not reach a “Yes” outcome. Kalshi co-founder Tarek Mansour (타렉 만수르) said, "We do not allow markets directly tied to death. In markets linked to death, we design rules to prevent it." Plaintiffs described this as “predatory” and “unfair” and pursued legal action.
Mansour promised affected users compensation based on the last trade before Khamenei’s death, but criticism continued that the method and timing for calculating it were unclear.
Chi-gyu Hwang
delight@d-today.co.kr