CoinDesk
Kalshi has introduced mandatory employer disclosure for users trading on markets it classifies as higher-risk for insider activity or manipulation. The federally regulated prediction-market exchange said the policy takes effect immediately, following recommendations from an independent Surveillance Audit Committee that reviewed its enforcement systems, monitoring tools, and trading controls.
The platform also unveiled a risk-scoring system that evaluates each market on factors including insider-trading risk, regulatory concerns, and national-security implications. Markets flagged as high-risk may face tighter controls or be rejected from listing entirely. New whistleblower tools allow users to report suspicious activity directly from individual market pages.
Why it matters
The moves come as prediction markets face intensifying regulatory and public scrutiny. A Yale and London Business School study analyzing Polymarket trades from 2023 to 2025 found that just 3% of traders drove most price moves. Two high-profile arrests — a U.S. Army Green Beret charged over $400,000 in bets tied to a Venezuela raid he participated in, and a Google engineer arrested for alleged insider trading — have sharpened the debate about whether prediction markets can police themselves. Tim Meggs, CEO of market-data firm LO:TECH, told CoinDesk that "Kalshi's move to require employment verification, risk-scored markets, and whistleblower tools highlights how the sector is starting to build the surveillance infrastructure to match its ambitions."
Market impact
Kalshi says it blocked more than 100 potential insider trades in Q1 alone, opened over 150 investigations, and referred more than 20 cases to law enforcement.
Frequently asked questions
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Which Kalshi markets will require employer disclosure under the new policy?
Kalshi applies the employer disclosure requirement to markets it classifies as carrying heightened insider-trading or manipulation risk. The exchange's new risk-scoring system evaluates each market on factors including insider-trading risk, regulatory concerns, and national-security implications before assigning…
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How many insider trading cases has Kalshi referred to law enforcement so far?
Kalshi says it blocked more than 100 potential insider trades in Q1, opened over 150 investigations, referred more than 20 cases to law enforcement, and issued five disciplinary actions. The company did not provide details on individual cases and the figures have not been independently verified.
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What triggered the prediction market industry's push for stricter surveillance?
A Yale and London Business School study found 3% of Polymarket traders drove most price moves between 2023 and 2025. Two high-profile arrests — a U.S. Army Green Beret and a Google engineer, both charged with insider trading on Polymarket — accelerated calls for formal compliance frameworks across the sector.
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