Kalshi Tops 200 Insider-Trading Probes in Q1 as Congress Threatens Prediction-Market Crackdown
Updated
Updated · abcnews.com · May 28
Kalshi Tops 200 Insider-Trading Probes in Q1 as Congress Threatens Prediction-Market Crackdown
8 articles · Updated · abcnews.com · May 28
Kalshi says it opened more insider-trading investigations in the first quarter of 2026 than in all of last year, when it launched more than 200 probes, making market surveillance its top priority.
The company says it now scans social media, employment records and campaign payroll data to flag bettors tied to events, and has blocked hundreds of suspected insider-trading attempts.
The push follows fresh criminal cases tied to rival platform Polymarket, including charges against a Google employee accused of making more than $1 million from search-data bets and an earlier case involving a U.S. raid.
Washington pressure is rising: the House Oversight Committee has opened a probe, and more than a dozen bills would restrict prediction-market contracts, including proposals targeting elections, sports and outcomes insiders can control.
That scrutiny lands as the CFTC, down roughly 25% in staff since last year, insists it can police the sector even as critics question whether existing rules and resources can keep pace.
As insider trading plagues 'truth machines,' can any regulation truly tame the incentive to profit from secret knowledge?
Beyond policing users, can new market designs make prediction platforms inherently resistant to insider manipulation?