Crypto prediction market Kalshi's AI advertisement has sparked controversy, accused of misappropriating YouTube videos from Asian content creator Elliot Choy and using AI to "whitewash" his image. Choy shared comparison screenshots yesterday, stating that Kalshi used his video for an advertisement.

Kalshi responded that it was an old advertisement and that they no longer use AI-generated ads, but the ad was still being promoted on YouTube this week. Additionally, another Kalshi AI ad has been mocked by users as "disgusting" and "disconnected" due to its "cheating" theme and plot involving "betting on egg prices."

Recently, Kalshi has also faced wash trading allegations, following a Wall Street Journal report that found abnormal patterns in $5 billion worth of ETH perpetual contract trades within a month.