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flag Kalshi froze $54M in bets on Iran's leader after a U.S. airstrike, citing ethical concerns and ambiguous wording, sparking backlash and calls for regulation.

flag In March 2026, Kalshi, a prediction market platform, froze $54 million in bets on Iran’s Supreme Leader Ayatollah Ali Khamenei’s removal, despite his reported death in a U.S. airstrike. flag The company stated it does not settle bets on death, clarifying that "out" referred to a peaceful transition, not assassination. flag Though users initially saw their bets marked as winners, Kalshi reversed payouts, citing ambiguous wording and ethical concerns, and will refund trading fees. flag The move sparked backlash over misleading promotion and transparency, with critics calling it ethically problematic and lawmakers pushing for legislation to ban such betting.

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