Kalshi rolls out employment checks to curb insider
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- Kalshi rolled out three new integrity measures effective immediately — risk scoring, employment verification, and 24/7 whistleblower features — after an advisory committee called for stronger controls.
- Kalshi's risk scoring uses six criteria, including whether a market raises national security concerns or falls outside current regulatory acceptability; markets crossing a threshold will require participant employment verification before any trade is placed.
- Kalshi said it stopped over 100 possible insider trading incidents in Q1 using its new screening tools.
- The announcement follows a May federal fraud charge against a Google employee who allegedly made over $1 million from insider information traded on rival prediction platform Polymarket.
- The Wall Street Journal first reported Kalshi's plan to require traders to disclose their employer's identity in certain markets.
- Kalshi Head of Enforcement Robert DeNault said the measures position the platform to "lead the industry on the issue of market integrity amongst federally regulated prediction markets," with the advisory committee continuing to deliver quarterly reports.
Why it matters: Kalshi is voluntarily building Wall Street-style compliance rails — employment checks, pre-trade screening, whistleblower intake — before regulators force the issue. The stakes became concrete in May when a Google employee was charged with fraud for allegedly profiting over $1 million from insider information on rival Polymarket, sharpening federal attention on every federally regulated prediction market.
