NEW YORK (AP) — The prediction market platform Kalshi will start collecting customer employment information for trading in certain markets that are at heightened risk of insider trading, the company said.
The Tuesday announcement follows several incidents where traders have used inside information to profit on prediction market platforms like Kalshi and Polymarket. Just last week, it was disclosed that former Congressman George Santos was under investigation for allegedly illegally betting he wouldn't attend President Donald Trump's State of the Union address after initially saying he would. In April, a U.S. Army soldier was charged with using classified information to make a $400,000 profit trading on Polymarket on the timing of the U.S. military operations in Venezuela earlier this year.
Kalshi will now assign a score to certain markets that it believes are at a heightened risk of insider trading or market manipulation. In order to trade on those markets that are scored to be a high risk, Kalshi will require its customers to provide employment information. Those who Kalshi identifies as presumptive insider traders will be banned from trading in those markets, the company said.
