Employer disclosure to curb insider trading in Kalshi’s prediction markets: Kalshi now requires users to disclose employment information for participation in higher-risk markets, and the policy takes effect immediately. The company used new screening tools in the first quarter to block more than 100 potential insider trades and opened more than 150 investigations. The requirement applies to markets identified as elevated risk.
Kalshi now requires users to provide employment information specifically to participate in markets the company designates as higher-risk. The disclosure is aimed at identifying people who may have access to material nonpublic information tied to an event or outcome. “For markets with heightened insider or manipulation risk, we now collect employment information before traders can participate,” Kalshi said in a statement. The collection applies to markets identified as having elevated insider or manipulation risk.
Kalshi has implemented a risk-scoring system that evaluates markets based on insider-trading risk, market importance, regulatory concerns, and national-security implications. Markets assessed as having elevated manipulation risks may face tighter controls or be rejected from listing. Kalshi added whistleblower reporting tools to flag suspicious trading activity directly from individual markets. These tools operate alongside the risk-scoring system and employment disclosure requirement.
Together, these measures constitute the company’s mechanisms for addressing insider trading risk in designated markets. The package includes employment disclosure for certain traders, the risk-scoring framework, possible listing restrictions, and whistleblower reporting tools.
Kalshi opened more than 150 investigations as part of its screening efforts into potential insider trading and market manipulation. The company referred over 20 cases to law enforcement. Kalshi also issued five disciplinary actions related to its investigations. These figures were reported by the company in connection with its enforcement activities.
The company did not provide details about the individual cases. The reported figures could not be independently verified. No additional case-level information was released alongside the totals.
Those disclosures represent the enforcement outcomes Kalshi disclosed publicly. External verification of the figures was not available.
A Yale and London Business School paper analyzing Polymarket trades from 2023 to 2025 found that only 3% of traders accounted for most price moves on Polymarket. Prediction markets allow users to bet on potential outcomes like elections, economic data, and corporate and political developments. The industry faces scrutiny and concerns about insiders exploiting knowledge.
A U.S. Army Green Beret was arrested in April for $400,000 bets on Polymarket on the raid in Venezuela to extract then-President Nicolas Maduro. A Google engineer was arrested for alleged insider trading on Polymarket. Both cases involved trading activity on Polymarket. These incidents are among examples cited in discussions of insider trading risks in prediction markets.
Kalshi now requires users to disclose employment information to address insider trading risks within its prediction markets. This policy forms part of a broader risk-mitigation framework that includes a market risk-scoring system evaluating insider-trading risk, market importance, regulatory concerns and national-security implications, alongside whistleblower reporting tools for flagging suspicious trading activity and enforcement measures such as investigations, law-enforcement referrals and disciplinary actions.
