The prediction market platform Kalshi has decided to void positions linked to the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, following confirmation of his passing by Iranian state media on Sunday. This decision comes in light of the platform's established policy against profiting from death-related markets. Tarek Mansour, co-founder of Kalshi, emphasized that traders who held positions before Khamenei's death will receive compensation based on the last traded price prior to the event.
Users who opened positions after Khamenei's death will be reimbursed for the difference between the higher entry price and the last traded price. This move has drawn criticism from some traders, who feel their potential profits have been unjustly limited. Kalshi reiterated its long-standing policy against “death markets,” which was outlined in the market rules.
In a related context, concerns over potential insider trading have been raised, particularly following recent geopolitical tensions. Notably, traders on rival platform Polymarket reportedly gained approximately $1 million by betting on U.S. military actions against Iran, raising further scrutiny of trading practices in volatile markets.