Kalshi,a prediction market platform,is moving to counter insider trading as concerns mount over market manipulation. New York company announced Tuesday it will require certain users to disclose employment details for markets seen as high-risk for manipulation.
These steps follow allegations of insider trading on Kalshi and competitor Polymarket. Kalshi lets users bet on events like sports outcomes and political elections . Collecting job info aims to weed out users with private knowledge affecting market outcomes.
Besides employment disclosure,Kalshi rolled out a scoring system to gauge risk levels of markets. And 24/7 channel for whistleblower reports was set up to boost oversight. These moves came after findings from Kalshi's Independent Surveillance Audit Committee,launched in February.
“By implementing these new integrity measures,we continue to lead industry on the issue of market integrity amongst federally regulated prediction markets,”said Robert DeNault,Kalshi’s head of enforcement,in statement.
The announcement follows several big cases of alleged insider trading involving Kalshi and Polymarket. In April,the U.S. Department of Justice charged special forces soldier for betting on the capture of former Venezuelan President Nicolas Maduro on Polymarket before the operation. The next month,a Google software engineer faced charges for using insider info to bet on search engine results on same platform.
Kalshi also acted against political figures, sanctioning three U.S. candidates with fines and account suspensions for betting on their own campaigns. Plus,the platform referred former Republican Congressman George Santos to U.S. authorities after he wagered on attending President Donald Trump’s State of the Union Address in February.
Since launching in 2021,Kalshi has grown fast, alongside Polymarket,live since 2020. Their combined monthly trading volume soared to $24 billion in April, up from less than $5 billion in September last year, per a crypto intelligence firm.
Kalshi also reported its first-quarter enforcement activities, revealing over 150 investigations launched, more than 100 potential insider trading cases blocked, and over 20 referrals to law enforcement. company’s proactive approach aims to bolster trust and integrity within the burgeoning prediction market sector…
