Prediction market platform Kalshi referred 32 suspected insider traders to the Commodity Futures Trading Commission during the three months ending in June, averaging two to three referrals per week. The platform launched over 200 investigations in the first half of 2026, examining trades potentially based on material non-public information. Two 2025 cases illustrate the range of misconduct: a political candidate was fined $2,246.36 and given a five-year trading suspension for betting on their own race, while an individual received a $20,397.58 penalty and two-year suspension for trading a YouTube-linked contract. The platform also announced plans to require users to disclose their employers when participating in certain high-risk markets. The CFTC reaffirmed its regulatory authority over prediction market activities on February 25, 2026.
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