Kalshi Faces Lawsuits Over $54M Unpaid Winnings on Khamenei Bets

Prediction market firm Kalshi is refusing to pay out $54 million in winning bets on the death of Iranian Supreme Leader Ayatollah Ali Khamenei. The company is now saying those who traded on the removal of Khamenei won’t be paid because the platform doesn’t allow trading “directly tied to death.” Many users said that caveat wasn’t included in the language of the original wager. Some customers are now suing the company to receive their expected winnings.

The lawsuit, which was filed in California, further alleges the market was “deceptive” and “predatory,” according to Reuters. The company has since added a warning on similar markets that payouts wouldn’t be made if death was the outcome of the wager.

Sen. Chris Murphy (D) said he plans to introduce legislation that would ban betting tied to government actions.