0+
Investigations
opened last year

Insider trading
is banned on.

How we protect marketsView enforcement cases↗ Report an insider

Regulated vs.
unregulated.

Prediction markets rife with insider trading arise offshore because they are not subject to U.S. law.

Offshore Unregulated
Insider trading rules
✓Prohibited by law
✕No rules exist
Identity verification
✓Full KYC required
✕None
Trade surveillance
✓24/7 real-time
✕Zero
Regulatory oversight
✓Federal Regulators
✕None
Violations reported to
✓Federal Regulators
✕Nobody
Historical enforcement
✓200+ investigations
✕?
Insider trading in marketing
✓Explicitly prohibited
✕Actively promoted

High-risk insiders are
prevented from trading.

No proxies. No tipping. No workarounds.

Trading through someone else, acting on inside information, or coordinating to move a market — all banned. Violations are federal offenses.

Real-time Surveillance.

01
Detect

Pattern recognition runs continuously against every trade — anomalous timing, win-rate irregularities, coordinated activity.

02
Investigate

Flagged account is frozen immediately. Compliance reviews funding sources, trading history, and gathers third-party intelligence. Legal determines whether a violation occurred.

03
Enforce

Confirmed violations result in disgorgement, fines, multi-year suspensions, or permanent bans. All confirmed violations are reported to the CFTC.

Real Enforcement Cases.

The Governor Candidate

Self-trading on own political race

In May, our Surveillance Department saw an online video by a candidate for Governor of California that appeared to show him trading on his own candidacy. We immediately froze his account and opened an investigation. The candidate was initially cooperative and acknowledged that this violated the exchange rules. As a candidate in a race, you can — and probably should — follow and use Kalshi's market forecast, but you should not trade on it.

✓Closed & Reported to CFTC
Detection: Internal surveillance + public video
Penalty
5-year ban
10× financial penalty

The Video Editor

Trading on privileged streaming schedule

The second case involved trading in markets tied to a popular YouTube streamer's videos. Our surveillance systems flagged near-perfect trading success on markets with statistically low odds — anomalous at a scale that could not be explained by skill alone. Because all trading data is publicly available, multiple Kalshi users also submitted tips about the unusual activity. Investigation revealed the trader was employed as an editor for the streamer's show, with likely access to material non-public information connected to his trading.

✓Closed & Reported to CFTC
Detection: Anomalous win rate + user whistleblower tips
Penalty
2-year suspension
5× financial penalty

Stricter than
stock exchanges.

Federal insider trading law was designed for equities. Kalshi mirrors those standards — then goes further, because event markets require restrictions that classical doctrine was never built to address.

✓
✓Prevention-first: High-risk individuals are blocked from trading markets where they could have an insider edge.
✓Pro-active screening: political persons, sports industry professionals, and others are blocked from relevant markets.
✓Explicitly prohibits trading by anyone who can influence the result — not just those who know it in advance.
✓Accounts frozen immediately upon flag — before profits can be withdrawn.
vs
✕
Stock exchanges
✕Post-trade surveillance only. No proactive restrictions on specific participants.
✕Only corporate insiders are blocked. No special restrictions against political persons who may also have an inside edge.
✕Addresses informational asymmetry only. Participants who can directly control outcomes face no restriction.
✕Enforcement is typically post-withdrawal, after profits are already secured.
100%

of trades are visible
to the public.

Independent users regularly analyze trading patterns and submit whistleblower tips when suspicious behavior appears. Public data turns the crowd into an extension of the surveillance system, making it difficult for insiders to hide.

In the MrBeast editor case, multiple Kalshi users submitted tips that aided the investigation.

Advised by leading
integrity experts.

Wharton Forensic Analytics Lab
Prof. Daniel Taylor
Wharton Forensic Analytics Lab
Forensic investigations
Former U.S. Treasury Under Secretary for Terrorism and Financial Intelligence
Brian Nelson
Former U.S. Treasury Under Secretary for Terrorism and Financial Intelligence
Financial compliance & integrity
Lisa Pinheiro, Independent Chair
Surveillance Audit Committee
Lisa Pinheiro, Independent Chair
Quarterly independent oversight
Institutional monitoring partner
Solidus Labs
Institutional monitoring partner
Behavior monitoring & pattern recognition
Head of Enforcement
Robert J. DeNault
Head of Enforcement
Former white-collar criminal attorney
Integrity Compliance 360
IC360
Integrity Compliance 360
Sports integrity partner

Trust is the foundation
of all markets.

With enforcement, markets become trusted infrastructure. Without integrity, markets become insider-only. Once participants believe it's rigged, liquidity dies.

↗ Report an insider