Escalation: Kalshi tightens insider-trading safeguards

Kalshi introduced new safeguards against insider trading, effective immediately. Every proposed market now gets a risk score, and higher risk markets require traders to disclose their employer before they can trade. The employment checks are used to screen out presumptive insiders before a trade and are consulted when a market shows suspicious activity.

The risk score weighs whether an outcome hinges on a single decision maker, whether it ties to corporate data such as sales or product launches, and whether the topic could raise regulatory or national security concerns. It also accounts for people outside traditional corporate roles who might hold nonpublic information. Less important markets that still carry high risk may be refused listing.

New whistleblower tools on every market let users report suspicious activity directly to a surveillance team. The program grew out of the first report from Kalshi’s independent Surveillance Audit Committee. In the first quarter, the enforcement team opened more than 150 investigations, blocked over 100 potential insider trades, made more than 20 referrals to law enforcement or regulators, and took five disciplinary actions.

AI-synthesized from multiple reported sources