Kalshi now requiring users to disclose employers for some bets after string of insider trading scandals

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Kalshi, a platform that allows users to bet on a variety of topics including sports and geopolitics, is implementing new measures to prevent insider trading scandals that have affected the platform and other prediction market platforms.

Users who wish to participate in markets that are deemed to have a risk of foul play will now be required to disclose their employer information through an online form, according to a recent announcement by Kalshi. These changes will be enforced in the upcoming weeks.

“This new requirement allows us to identify potential insiders – individuals who may possess undisclosed information about the outcome of a market – and prevent them from making trades,” Kalshi stated in a press release.

Betters who want to wager in some markets that have the potential for foul play will need to submit an online form disclosing their employers. AP Photo/Jenny Kane

Kalshi has also introduced a new “risk-scoring” system to identify high-risk bets based on factors such as national security and geopolitical implications. Bets with a heightened risk of insider trading or manipulation will require users to verify their employment before participating, the company explained.

These changes were prompted by a request from an audit committee focused on maintaining market integrity, which advised Kalshi to enhance security measures to prevent insider trading and market manipulation.

Earlier this year, Kalshi and its competitor Polymarket implemented new policies to prevent insider trading following legislative efforts to restrict betting on sports and casino games on these platforms.

Both companies have faced allegations of insider trading, with House Oversight Committee Chairman James Comer calling for information from their CEOs over concerns of rampant insider trading.

The Department of Justice has launched investigations into individuals allegedly involved in insider trading through platforms like Kalshi and Polymarket, including cases of misuse of classified information for personal gain.