Kalshi Bot Stops Suspicious Trades Amid Wash Trading Allegations

A trading bot on Kalshi's market has stopped making suspicious trades after allegations of wash trading emerged.

The bot, which made uniform trades every four seconds, was flagged by 'Beni', a pseudonymous quant analyst, who claimed the trades were inflating the 24-hour trading volume of ether perpetual contracts to $539 million while open interest was just $3.1 million.

Kalshi's crypto lead, IcoBeast.eth, initially aggressively rebuffed Beni's claims but later apologized for his tone and explained that their incentives pay for liquidity, not wash trading.

The unusual bot trades were visualized by Daniel Sapkota, who also noted that a prediction market tool firm Resolve made around $30 a day counter-trading the metronome bot.