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      Kalshi Denies CFTC Investigation Amid Trading Pattern Scrutiny

      Kalshi, a prediction market regulated by the U.S. Commodity Futures Trading Commission (CFTC), has denied reports suggesting that it is under investigation for its ether perpetual futures trading activities. The company asserts that it has not been contacted by the CFTC and claims that the trading patterns in question are typical of healthy market-making rather than indicative of wash trading.

      Recent reports highlighted that Kalshi's ether perpetual futures market experienced nearly one million trades clustered around similar sizes, each approximately valued at $5,500. This trading activity resulted in over $5 billion in volume within a single month, raising concerns about the volume-to-open-interest ratio, which peaked at 174x. Such a high ratio can suggest either legitimate high-frequency trading or potential wash trading, where assets are bought and sold to artificially inflate trading volume.

      In response to the scrutiny, Kalshi spokesperson Elisabeth Diana emphasized that the platform's systems prevent self-trades and actively monitor for coordinated trading activities. The company has a history of cooperating with regulators, having referred multiple insider trading cases to the CFTC and enforced penalties in previous incidents related to its political prediction contracts.

      Kalshi, which initially gained recognition for its prediction markets covering various events, has recently expanded into cryptocurrency derivatives, specifically perpetual futures. This strategic move positions Kalshi as a compliant U.S. alternative in a competitive market dominated by offshore venues. As of now, no formal enforcement action has been announced, and the CFTC has not confirmed any investigation into Kalshi's trading practices.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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