Kalshi Trading Activity Sparks CFTC Investigation Over $5B in Unusual Trades

The Commodity Futures Trading Commission (CFTC) is investigating unusual trading activity on Kalshi's Ethereum perpetual futures market. According to The Wall Street Journal, nearly one million trades have been clustered around a $5,500 order size since August, totaling over $5 billion in volume.

This pattern has raised concerns about wash trading, which involves artificially inflating prices through fake trades. However, Kalshi denies any wrongdoing and attributes the repeated order sizes to ordinary market-making activity.

The CFTC is now reviewing the situation to determine if regulatory or market integrity issues are involved.