Kalshi Denies Wash Trading Claims in ETH Perpetual Futures Market

Kalshi is facing allegations of wash trading in its ETH perpetual futures market. The exchange claims that repeated $5,500 trades are linked to its market-making programs, which reward liquidity providers for placing orders rather than generating volume.

The program can produce identical trades when users take fixed orders during price moves. However, analyst Beni questioned the explanation, saying that these trades represented a large share of activity.

Kalshi said hundreds of traders were taking orders from a market maker posting fixed-size contracts. The exchange also cited a temporary fee-rebate program for members clearing their own trades. Rebates are capped at fees paid, and Kalshi's systems are designed to prevent self-trading and flag coordinated activity.

Kalshi's internal review found no evidence of wash trading or collusion. However, Beni's analysis put ETH perpetual volume at about $539 million, compared with $3.1 million in open interest.