WSJ: US CFTC is investigating Kalshi for 'wash trading,' Kalshi denies fake trades.

BlockBeats news, September 23, according to The Wall Street Journal, a person familiar with the matter revealed that the U.S. Commodity Futures Trading Commission (CFTC) is investigating "wash trading" on Kalshi. Earlier allegations claimed that since August, traders on prediction market Kalshi conducted nearly 1 million trades in the Ethereum futures market, with almost identical amounts per trade, and this unusual activity drew the attention of federal regulators and traders.

Kalshi said in a blog post that there is no fake trading on the platform, and that the recurring quotes are fixed quotes posted by market makers, which faster traders seize. Kalshi co-founder Luana Lopes Lara said in an interview with The Wall Street Journal that it is not uncommon for exchanges to try to attract large traders into new markets to promote broader adoption. "Any market trying to launch a new product and new business will go through this process," she said. "This is very normal."