Kalshi Accused of Wash-Trading in Ethereum Perpetual Market

Kalshi, a cryptocurrency trading platform, is facing allegations of wash-trading in its Ethereum perpetual market. Trader Beni questioned the unusually high volume of $538.6 million compared to only $3.1 million in open interest, representing turnover of roughly 174 times open interest.

Beni argued that the large discrepancy suggested inflated trading volume, which could be a sign of wash-trading. He also pointed out that Kalshi's leaderboard showed the largest position at just $17,598 when he captured the data.

Kalshi's crypto lead IcoBeast disputed the accusations, stating that different products were being mixed together and some of the data related to prediction-market volume rather than perpetual futures.