CFTC Probes $5 Billion Trading Pattern on Kalshi's Ethereum Perpetuals
The Commodity Futures Trading Commission (CFTC) is investigating unusual trading patterns in Kalshi's Ethereum perpetual futures market. The investigation centers around nearly $5 billion in reported volume, with over one-third of recent trades clustering near the $5,500 order size since August.
Kalshi has denied allegations of wash-trading, stating that hundreds of separate traders participated and that market makers maintained fixed resting orders repeatedly matched by faster traders.
The platform claims to prevent self-trading through mechanical means and monitors prohibited activity. It also compensates market makers for maintaining orders at specified sizes and spreads rather than generating raw volume.
Kalshi is expanding its perpetual futures business, which entered crypto markets in May, and plans to add contracts tied to individual U.S. stocks.