Kalshi Mandates Employer Disclosure on Sensitive Markets and Adds Whistleblower Tools After Polymarket Insider-Trading Case
The prediction market platform introduced employment verification and risk scoring for sensitive contracts effective immediately after its advisory committee recommended tighter controls.
medium.comKalshi said Tuesday it will require traders to provide employment details when participating in certain markets and will offer enhanced whistleblower services, with the measures taking effect immediately. The platform will assign each market a risk score based on six factors, including whether the contract raises national-security concerns or complies with current regulation.
Markets that exceed a set benchmark will trigger mandatory employment verification before any trade is placed.
Kalshi will also let users report suspected abusive activity on any market at any time, routing those tips through internal alerting controls to its surveillance team. An advisory committee had urged stronger steps to address insider-trading risks, and Kalshi said the panel will continue issuing quarterly reports.
In the first quarter, the platform said its screening tools blocked more than one hundred possible insider-trading incidents.
Federal prosecutors charged a Google employee with fraud in May after the employee allegedly earned over a million dollars using inside information on Polymarket. The Wall Street Journal first reported that Kalshi would require traders to disclose their employer's identity in sensitive cases.
"By implementing these new integrity measures, we continue to lead the industry on the issue of market integrity amongst federally regulated prediction markets," said Robert DeNault, Kalshi Head of Enforcement.
CNBC and Kalshi maintain a commercial relationship that includes customer acquisition and a minority investment.
