Jun 12, 2026 13:10:00

Prediction marketplace Kalshi strengthens insider trading prevention measures, including individual risk assessments and collection of participants' employment information.

Kalshi , a prediction market platform that allows users to bet on anything, has announced it will implement a 'market health update' in response to an increase in users being prosecuted for suspected insider trading . The update will include assigning a unique risk score to markets with a high risk of insider trading and market manipulation, and for markets with a certain score, collecting user employment information to detect potential insiders.

Kalshi to Implement Market Integrity Updates
https://news.kalshi.com/p/kalshi-market-integrity-updates-risk-scoring-employment-verification-whistleblower

Kalshi adds required employment verification for some prediction market bets | The Verge
https://www.theverge.com/business/948083/kalshi-prediction-markets-insider-trading

In February 2026, Kalshi established an 'Independent Supervisory and Audit Committee' in partnership with leading experts and organizations in the monitoring industry, with the aim of expanding its market surveillance and enforcement capabilities. In June 2026, the Independent Supervisory and Audit Committee submitted its first report, confirming that it investigated more than 150 cases of suspected fraud and rule violations in the first quarter, that more than 100 potential insider trading cases were blocked by new screening tools, and that there were more than 20 reports to the police.

Based on the report, Kalshi announced new market health measures on June 9, 2026. One is the establishment of a new 'risk scoring framework,' which assigns high risk scores to markets that have traditionally been monitored, such as product launches, as well as markets where the outcome is easily influenced by the judgment of a single individual or opaque organization, markets with few participants that are susceptible to price manipulation, and markets where there is a high probability that individuals possessing important non-public information exist. Markets deemed to have a high risk of insider trading or market manipulation may be subject to additional scrutiny or trading restrictions.

Polymarket, the world's largest prediction market service, saw $529 million (approximately 83 billion yen) traded on predictions about a US-Israeli bombing of Iran on February 28, 2026, raising suspicions of significant insider trading by government or military personnel. While Kalshi does not handle trades related to war, assassinations, or violence, national security concerns can arise even in trades related to elections and foreign policy. Therefore, Kalshi states that by assessing a 'national security risk' score for events that can be reasonably linked to events that could disrupt the market, it is possible to prevent risky events from negatively impacting Kalshi's markets, or conversely, preventing Kalshi's markets from creating national security risks.

A massive 83 billion yen transaction occurred on the prediction marketplace Polymarket, related to predictions about a US-Israeli attack on Iran - GIGAZINE

Furthermore, in markets with a high risk of insider trading and market manipulation, traders are now required to submit information about their workplace and occupation before participating. This makes it possible to identify potential insiders who possess important and confidential information about market outcomes and eliminate them before trading takes place.

Furthermore, all Kalshi markets have a reporting tool that allows users to submit whistleblowing information, which is sent directly to the monitoring team that monitors trading activity 24/7. In addition, an internal alert system has been established to receive and process whistleblowing information submitted by traders, allowing them to report any suspicious activity they encounter on Kalshi.

Kalshi's 'Market Health Update' will be effective from the date of publication.

Furthermore, the U.S. Commodity Futures Trading Commission (CFTC) announced it will establish a framework to assess whether trading in prediction markets constitutes 'terrorism, assassination, war, gambling, or any other illegal activity under federal or state law' as enumerated in Section 5c of the Commodity Exchange Act, and if so, whether the trading is contrary to the public interest. CFTC Chairman Michael S. Selig stated , 'The CFTC will protect the health of regulated markets without hindering responsible innovation. This proposal will provide the Commission with a lasting and transparent framework for identifying contracts that Congress has mandated scrutiny, while simultaneously promoting the development of legitimate markets.'