Kalshi Denies Inflated Trading Volumes, Claims Common Liquidity Patterns

Kalshi, a US-based prediction market platform, has denied allegations of inflated trading volumes in its crypto derivatives markets. The company claims that the activity reflects common trading patterns seen in liquidity-provider incentive programs.

A recent report by The Wall Street Journal stated that regulators are reviewing data related to unusual trading patterns in Kalshi's Bitcoin and Ether perpetual futures markets. It was reported that roughly 1 million trades of similar size took place in the Ether market, with a significant portion of notional volume coming from trades of exactly $5,500.

Kalshi spokesperson Elizabeth Diana stated that such data patterns are common in liquidity incentive programs and are frequently seen across financial markets. The company also said it operates a separate surveillance team and monitoring tools to prevent self-trading and wash trading.

The CFTC did not respond to a request for comment on the report, but Kalshi claims that routine regulatory data reviews do not amount to a formal investigation. According to market research firm Stealth Neolabs, Kalshi's Ether perpetual futures market recorded about $539 million in 24-hour trading volume, while open interest stood at just $3.1 million.