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flag Kalshi froze $54M in bets on Iran’s leader after a U.S. airstrike, citing ethical concerns and ambiguous terms, 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 Ali Khamenei being “out” as leader after his death in a U.S. airstrike, stating its markets do not settle on death and that “out” referred to a peaceful transition, not assassination. flag Despite initial payouts being marked as successful, the company reversed course, citing ambiguous messaging and ethical concerns, and will refund users’ losses from trades made before a clarification. flag The move sparked backlash from users and lawmakers, including Sen. Chris Murphy, who called the practice ethically troubling and is proposing legislation to ban such betting, especially on government actions. flag The incident has intensified scrutiny over the ethics and transparency of prediction markets involving geopolitical violence.

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