Kalshi Faces CFTC Scrutiny Over $5B Ether Perpetual Trades

The US Commodity Futures Trading Commission (CFTC) is investigating unusual trading activity on Kalshi, a cryptocurrency derivatives platform. Nearly one million ether perpetual futures trades occurred in almost identical amounts, with more than one third of recent trades clustered around $5,500.

This pattern has accounted for over $5 billion in ether perpetual volume over the past month, according to an analysis by The Wall Street Journal. Kalshi has denied allegations of wash trading, arguing that hundreds of distinct traders participated in the transactions and market makers maintaining fixed resting orders were repeatedly hit by faster traders.

The CFTC is reviewing the activity before determining whether to open an enforcement investigation. Jump Trading and Wintermute were among firms involved in the rapid transactions, with Jump stating it trades for profit, uses self-match prevention tools, and does not coordinate its activity with other traders.