Ali Khamenei Kalshi Bet Stokes Controversy — CEO Says Platform Prevents Against Profiting From ‘Death,’ But Could Have Done Better

Kalshi CEO Tarek Mansour defended on Sunday a bet tied to Iran’s Supreme Leader Ali Khamenei, who was killed in the joint U.S-Israeli strikes.

Bet Not Directly Tied To Death, Says Kalshi CEO

Mansour addressed the controversy on X after backlash over the “Ali Khamenei out as Supreme Leader?” prediction market, where critics accused the platform of enabling bets on a person’s death.

“We don’t list markets directly tied to death,” Mansour said. “When there are markets where potential outcomes involve death, we design the rules to prevent people from profiting from death. That is what we did here.”

Mansour defended the bet, arguing that leadership changes in Iran have a “major impact” on the world order, including economic, national security and commodity prices.

Kalshi Says It Could Have Done Better

The bet was one of the most popular on Kalshi, with trading volumes exceeding $54 million at last check.

Manosur stated that, according to their disclaimer, Kalshi settled the market based on the last traded price before the time of death. Moreover, if someone opened a position after Khamenei’s death, they’d be reimbursed the difference between the price they bought and the last traded price before the time of death.

The CEO also announced that Kalshi will refund all fees from the bet to users.

“In these instances, we make the caveat clear in the rules and in the market page, but today is a good learning that we can do more in terms of improving the UX and adding more ways to surface the rules,” he said.

What Is Polymarket Up To?

A similar bet on Polymarket, a Polygon (CRYPTO: POL)-based prediction market, has also been disputed, with a final review slated within the next 48 hours.

Unlike Kalshi, Polymarket didn’t issue a “death” caveat, stating that, “Khamenei will be considered to be removed from power if he resigns, is detained, or otherwise loses his position or is prevented from fulfilling his duties as Supreme Leader of Iran within this market’s timeframe.”

Polymarket didn’t immediately return Benzinga’s request for comment.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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