Beast Industries has suspended an employee pending an internal investigation into allegations of insider trading, CEO Jeff Housenbold announced on Thursday. This action comes a day after the prediction markets platform Kalshi fined and suspended Artem Kaptur, a video editor for YouTube star MrBeast, for allegedly using insider knowledge to profit from trades related to MrBeast's unreleased video content.
Housenbold stated the suspension was made following consultation with the company’s chief compliance officer. During an appearance on CNBC’s “Squawk Box,” he described the company's approach to risks posed by prediction markets as proactive. He noted that several months ago, he implemented policies explicitly prohibiting employees and participants in the firm's reality competition series from trading on non-public information, regardless of legal ambiguities.
On Wednesday, Kalshi announced it had fined Kaptur $20,000 and suspended him from its platform for two years. The platform determined he likely abused knowledge of upcoming events in MrBeast's videos to conduct "near-perfect trading," wagering a total of $4,000 on related markets.
A Beast Industries spokesperson declined to provide additional comment on Kalshi's findings or the employee's suspension, referring to a previous statement that the firm "has no tolerance for this behavior." The spokesperson also referenced a now-deleted post on X from an account claiming to be Kaptur.
In the deleted post, the individual described their actions as “stupid, shortsighted, and a violation of the trust that was placed in me,” but argued the repercussions were excessive. The post claimed the person lost their job and career over a "small bet" on a platform whose rules were still evolving, calling the experience "deeply disorienting." It also mentioned raising funds for a defense after receiving offers of cryptocurrency from users on X.
Kalshi has referred Kaptur's conduct to the Commodity Futures Trading Commission (CFTC), which asserts regulatory authority over prediction markets. The platform also referred a separate case involving market manipulation by Kyle Langford, who wagered on his own California gubernatorial bid.
The incident has reignited debate about prediction markets. Some experts argue they function best with broad participation, while critics, including some lawmakers, contend insider trading undermines market trust and fairness. Housenbold acknowledged prediction markets are "ripe for abuse" due to asymmetric information, suggesting the industry must police itself, though questions remain about state-level regulation, especially with pending lawsuits in states like Nevada and Massachusetts.