Kalshi Rolls Out New Safeguards After Insider Trading Concerns Hit Prediction Markets
Kalshi is adding stronger anti-insider-trading controls for prediction markets it deems high risk. Traders in those markets will have to disclose employment details, especially for contracts tied to corporate results, national security, or major geopolitical events. The exchange says it will use a new six-factor risk-scoring system to screen proposed markets and may reject listings with high manipulation risk. It is also expanding whistleblower tools, continuing 24/7 surveillance, and keeping quarterly oversight reports from its audit committee. Kalshi says it has opened 150+ investigations this year, blocked 100+ potential insider trades, referred 20+ cases to law enforcement, and issued five disciplinary actions. The move comes amid broader scrutiny of prediction markets and follows actions against political candidates who traded on their own elections. Critics say employer disclosure helps but cannot fully detect insider information and may also risk limiting legitimate, informed traders.
