Wall Street · CoinDesk
Kalshi confirms it is not being investigated by the CFTC over trading activity
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Kalshi said it has not been contacted by the Commodity Futures Trading Commission (CFTC) and does not believe it is under formal investigation, pushing back against reports of regulatory scrutiny over trading activity on the prediction market.
Key facts
- Early Tuesday that a majority of trading volume on Kalshi’s bitcoin and ether perpetual markets was composed of identically-sized trades, with many ether perp trades clustered around $5,500
- The activity had already drawn attention from Beni, a co-founder of research firm Stealth Neolab, who said Kalshi’s ether perpetual recorded about $539 million in 24-hour volume against $3.1 million
- He later found that trades of exactly $5,500 made up 48% to 58% of notional volume on four days in September
- We have not been contacted by the CFTC and don't believe there is any formal examination,” Kalshi spokesperson Elisabeth Diana said in a statement
Summary
Kalshi said the CFTC has not contacted the company and it does not believe the regulator has opened a formal examination into its trading. The Tuesday that the CFTC was looking at trades on Kalshi before determining whether to open an enforcement investigation; the agency declined to confirm whether an investigation was underway. Questions about Kalshi’s trading activity emerged after nearly one million trades in an ether market were placed in similar amounts, while Kalshi said the patterns stem from its liquidity incentive program. “We have not been contacted by the CFTC and don't believe there is any formal examination,” Kalshi spokesperson Elisabeth Diana said in a statement.