CFTC investigates Kalshi over alleged wash trading; platform denies wrongdoing

The US Commodity Futures Trading Commission (CFTC) is investigating the prediction market Kalshi regarding allegations of wash trading. Reports suggest that traders on the platform have executed nearly one million transactions of similar amounts in the Ethereum futures market since August. Kalshi has denied the allegations, stating that the repetitive quotes are standard fixed-price offerings from market makers and that incentivizing liquidity during the launch phase of a new market is common practice.