Kalshi ripped over 'deceptive' and 'predatory' actions for not paying $54M after Iran leader's death
Kalshi, a prediction market, is being sued for $54 million after invoking a 'death carveout' to avoid payouts following Ayatollah Ali Khamenei's death.Summary
Kalshi, a prediction market, faces a class action lawsuit for failing to pay out $54 million to users who bet that Iranian Supreme Leader Ayatollah Ali Khamenei would leave office before March 1, 2026. Khamenei died on Saturday in strikes attributed to the US and Israel. The lawsuit alleges that Kalshi initially allowed trading on Khamenei’s departure due to any cause, including death, but then invoked a “death carveout” provision to avoid paying winners after his death. Plaintiffs argue the contract language was “clear, unambiguous and binary,” and Kalshi’s actions were “deceptive” and “predatory.” Kalshi maintains its rules were clear from the start and that they reimbursed fees and losses, amounting to millions of dollars, to ensure no one lost money. Prediction markets like Kalshi have gained popularity, demonstrating accuracy in forecasting events like the 2024 US election, offering tradable contracts on various real-world outcomes.
(Source：New York Post)