Kalshi says CFTC hasn’t contacted it over ‘unusual’ $5B trading activity
Kalshi said nearly $5 billion in similarly sized Ether perpetual trades reflected its liquidity incentive programs and rejected allegations that the activity was wash trading.
Kalshi said nearly $5 billion in similarly sized Ether perpetual trades reflected its liquidity incentive programs and rejected allegations that the activity was wash trading.
Prediction markets operator Kalshi said it has not been contacted by the Commodity Futures Trading Commission and does not believe there is any formal examination, after a report that the regulator was reviewing a flurry of trading activity in its Ether perpetual futures market.
On Tuesday, The Wall Street Journal reported that the CFTC is examining a pattern of rapid trades clustered around $5,500, citing a person familiar with the matter. The trading pattern has prompted allegations of wash trading.
The Journal also reported that Kalshi offered some traders opportunities to buy equity in the company if they met trading-volume targets, citing people familiar with the arrangements. It also said the company waived trading fees and provided monthly cash payments to encourage large traders to provide liquidity.