CFTC Investigates Kalshi for Wash Trading, Platform Denies Fake Trades

Odaily News: A person familiar with the matter revealed that the U.S. Commodity Futures Trading Commission (CFTC) is investigating Kalshi for suspected wash trading. Since August, Kalshi traders have executed nearly 1 million trades in the Ethereum futures market, with each trade being almost identical in size, drawing the attention of federal regulators and traders. Kalshi stated that there is no fake trading on the platform, and that the recurring quotes are fixed quotes posted by market makers, which faster traders seize upon. Kalshi co-founder Luana Lopes Lara said that attracting large traders to new markets to promote broader adoption is not uncommon.