WASHINGTON (TNND) — The prediction market platform Kalshi is cracking down on insider trading by political candidates. On Wednesday, the platform announced fines and suspensions for three primary candidates.

“Just like in traditional financial markets, bad actors will try to cheat. Regulated exchanges must constantly evolve and adapt their systems to address insider threats. These three cases are an example of how developing proactive engineering solutions can help identify illicit trading activity,” Kalshi wrote in a news release.

1. Minnesota Democratic Primary Candidate

Kalshi’s surveillance system flagged a trade for a Democratic Primary Candidate in Minnesota’s 2nd Congressional District. Kalshi said he traded a small amount on the outcome of his own election.

The candidate, Minnesota state Sen. Matthew Klein, a Democrat who is running for an open U.S. House seat, wrote in a statement, “This was a mistake, and I apologize.”

Klein wrote he was curious about how the predication market app worked, so he bet $50 of his own money that he would win the nomination. He is now subject to a ban and a fine for violating the platform’s rules.

He added that there is a need for clearer rules and regulations on prediction markets.

“As part of that settlement, he acknowledged that the trading activity violated Kalshi exchange rules, agreed to pay a fine of $539.85, and to a suspension from Kalshi for a period of 5 years,” Kalshi wrote.

2. Texas Republican Primary

Kalshi said they caught “suspicious trading” from a candidate for Texas’s 21st Congressional District.

The predication market platform said he was fully cooperative with the investigation and agreed to settle, acknowledging the rule violation. He paid a $784.20 fine and accepted a five-year suspension.

3. Democratic Primary for Virginia’s U.S. Senate

Mark Moran, who is running as an independent for the U.S. Senate in Virginia, bet he would announce a run in October, then launched his campaign in January. Kalshi added he traded on his own candidacy.

Moran told CNN he “wanted to get caught” to draw attention to illegal gambling.

Kalshi alleged Moran stopped all communication with their team without complying with requests to settle the matter. They fined him $6,299.30 and suspended him from the platform for five years.

Looking ahead

In February, Kalshi said it opened 200 investigations and flagged accounts for insider trader concerns. Two Kalshi users were taken off the platform.