Kalshi to Collect Job Details From Some Users to Curb Insider Trading

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Prediction market operator Kalshi will require users attempting to trade on higher-risk markets to disclose employment information as part of an effort to curb insider trading and manipulation.

Kalshi said it will use a risk-scoring framework to assess markets before listing them and determine whether additional checks are needed. It will consider factors including corporate performance, product launches, national security implications, and manipulation potential. Users identified as “presumptive insiders” will be blocked from trading in relevant markets before a transaction is placed.

Kalshi said it will also introduce a whistleblower portal and expand surveillance of suspicious trading activity. 

The company said: “By running an assessment on the national security risk a market might present before we list it, we can better prevent dangerous events from having a negative effect on our markets – or vice versa.”

Kalshi was the United States’ first licensed prediction market, which is an online platform where users trade event contracts tied to the outcome of real-world future events, including politics, sports, business, and culture. In essence, users “bet” on whether a future outcome will happen or not. 

Prediction markets have faced growing scrutiny as their popularity has increased. Many concerns have centered on whether users with access to non-public information can profit from event contracts.

Recent cases have intensified those concerns. A Google employee was charged last month with allegedly using company information to place bets on rival prediction market platform Polymarket.

A United States special forces soldier is also alleged to have used insider knowledge about the removal of Venezuelan President Nicolás Maduro to make more than $400,000 on Polymarket.