TLDR
- Kalshi said the CFTC has not contacted the company and denied knowledge of any formal investigation.
- Reports questioned repeated trade sizes across Kalshi’s Bitcoin and Ether perpetual markets.
- Researcher Beni found $5,500 Ether trades made up a large share of notional volume on several September days.
- Kalshi said its liquidity incentive program can explain repeated trade patterns across its markets.
- The company said it uses surveillance tools and a dedicated team to detect wash trading and self-trading.
Kalshi said the Commodity Futures Trading Commission has not contacted the company and that it does not believe any formal investigation has started. The statement followed reports questioning unusual trading patterns across its Bitcoin and Ether perpetual markets.
Kalshi Pushes Back on CFTC Scrutiny Reports
Spokesperson Elisabeth Diana said Kalshi sends trading data to the CFTC every day. She said routine reviews would not be unusual because the regulator already receives the platform’s market information.
Reports focused on repeated trade sizes across crypto contracts. CoinDesk found many Ether trades near $5,500 and Bitcoin trades near $2,500 or $5,000. Recent wash trading concerns had already drawn attention to the platform’s volume data.
Repeated Trade Sizes Draw Attention
The Wall Street Journal reported that the CFTC was reviewing activity before deciding whether to start an enforcement investigation. It cited nearly one million Ether trades that appeared in similar amounts.
Researcher Beni also questioned the activity after comparing about $539 million in daily Ether perpetual volume with $3.1 million in open interest. His figures came from Kalshi’s public API.
Kalshi Points to Liquidity Incentives
Diana said Kalshi’s liquidity incentive program can produce repeated trade sizes. Such programs reward participants who place orders and help other customers buy or sell contracts more easily. Broader interest in stock perpetual futures has also increased as exchanges seek regulatory approval for new products and compete for new users and trading activity.
Kalshi also said it uses surveillance tools and a dedicated team to detect self-trading and wash trading. Wash trading creates the appearance of activity without changing a trader’s real market exposure. The company said its controls monitor that behavior.
Regulatory Focus Follows Market Growth
Prediction markets have expanded quickly, bringing more attention to reported volume, market surveillance, and trading controls. The CFTC had not responded to the request for comment cited in Tuesday’s report.
Other firms are also seeking approval for new derivatives, including Coinbase’s U.S. perpetual futures filing. That activity shows how regulated crypto-linked products continue to broaden across American trading platforms.
Diana also rejected social media claims about Kalshi and said competitors had fueled some rumors. The company maintains that the trading patterns reflect its incentive structure rather than improper activity, while market participants continue debating the reported data across markets.
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