Kalshi to Collect Employment Data, Bar Presumptive Insiders from High-Risk Prediction Markets

Kalshi will begin collecting customer employment information for trading in markets it scores as high risk for insider trading or market manipulation, the company said Tuesday. The platform will assign each market a score reflecting its assessment of those risks.

Customers seeking to trade in markets that receive a high-risk score must provide employment details, and the company will bar anyone it identifies as a presumptive insider from participating in those contracts.

The employment data will be used only when suspicious activity appears on the market in question. Kalshi said the step allows it to identify people who hold material, nonpublic information about an outcome and to screen them out before any trade occurs.

“By implementing these new integrity measures, we continue to lead the industry on the issue of market integrity among federally regulated prediction markets,” Robert DeNault, head of enforcement at Kalshi, said in a statement.

The announcement follows several recent cases in which traders used nonpublic information on prediction-market platforms. Last week it was disclosed that former Congressman George Santos is under investigation for allegedly betting illegally that he would not attend President Donald Trump’s State of the Union address after saying he would attend. S.

military operations in Venezuela earlier this year. Kalshi also said it has made at least 20 referrals to law enforcement or securities regulators concerning market manipulation or insider trading.

The company announced in February that it was forming an Independent Surveillance Audit Committee to address those issues, and the measures announced this week grew in part from the committee’s work. S. jurisdiction while seeking broader acceptance among the public and policymakers.