Kalshi now requires users to reveal employers as it fights insider trading and market manipulation
The prediction markets platform introduced new measures on Tuesday that it said will apply to markets it considers are likely to face higher risks of insider trading and abuse.
What to know:
- Kalshi will begin requiring some users to disclose their employers for higher-risk markets as part of an effort to curb insider trading and market manipulation on its prediction platform.
- The new measures, which take effect immediately, follow recommendations from an independent Surveillance Audit Committee and include pre-trade screening, a risk-scoring system for markets, and enhanced whistleblower tools.
- Kalshi says it has already blocked more than 100 potential insider trades, opened over 150 investigations, and referred more than 20 cases to law enforcement as prediction markets face growing scrutiny over insider abuse.
The company said the changes take effect immediately and follow recommendations from an independent Surveillance Audit Committee that reviewed Kalshi’s enforcement systems, monitoring tools, and trading controls.
“For markets with heightened insider or manipulation risk, we now collect employment information before traders can participate,” Kalshi said in a statement. The company said the process is designed to identify people who may have access to material nonpublic information tied to an event or outcome.
The platform’s new measures come as prediction markets face increasing scrutiny. Recently, a Yale and London Business School paper analyzing Polymarket trades from 2023 to 2025 found that only 3% of traders accounted for most price moves. The study highlighted the case of a U.S. Army Green Beret arrested in April for $400,000 bets on Polymarket on the raid in Venezuela to extract then-President Nicolas Maduro, in which he participated. A month later, a Google engineer was also arrested for alleged insider trading on Polymarket.
