Kalshi said it will begin requiring some users to disclose their employers as part of a broader push to crack down on insider trading and market manipulation on its prediction market platform.
The federally regulated exchange said Tuesday that the new policy will apply to markets it deems to have a higher risk of insider activity or abuse. These traders may be screened before they are allowed to place trades.
The company said the changes are effective immediately and follow recommendations from an independent supervisory review committee that reviewed Kalshi’s enforcement systems, monitoring tools and trading controls.
“For markets with increased insider or manipulation risk, we now collect employment information before traders can participate,” Kalshi said in a statement. The company said the process is designed to identify individuals who may have access to material non-public information related to an event or outcome.
The platform’s new initiative comes as the prediction markets are being increasingly scrutinized. Recently, a Yale and London Business School paper that analyzed Polymarket trades from 2023 to 2025 found that only 3% of traders accounted for most price movements. The investigation highlighted the case of a US Army Green Bareet, who was arrested in April for betting $400,000 at Polymarket on the raid in Venezuela to extract then-President Nicolas Maduro, in which he participated. A month later, a Google engineer was also arrested for alleged insider trading at Polymarket.
Prediction markets allow users to bet on the potential outcome of future events, including elections, economic data, and corporate and political developments. As the industry grows, critics have raised concerns that traders with insider knowledge could exploit thinly traded or highly sensitive markets.
Kalshi said it blocked more than 100 potential insider trades in the first quarter using new screening tools. The company also said it opened more than 150 investigations, referred more than 20 cases to law enforcement and issued five disciplinary actions. The company did not disclose details of these cases and the figures could not be independently verified.
The exchange also announced a new risk scoring system that evaluates markets based on factors including insider trading risk, market importance, regulatory concerns and national security implications. Markets deemed to carry elevated risks of manipulation may face tighter scrutiny or be delisted altogether.
Kalshi said it also added new whistleblower reporting tools that allow users to flag suspicious trading activity directly from individual markets.
Tim Meggs, CEO and co-founder of LO:TECH, a transparent market data infrastructure company, told CoinDesk that prediction markets have grown so quickly that questions about their integrity need to be addressed as they are no longer theoretical. “Kalshi’s move to require employment verification, risk-rated markets and whistleblower tools highlights how the sector is beginning to build the surveillance infrastructure to match its ambitions,” Meggs said. “That maturation matters as much as the volume numbers.”
