CFTC probing possible "wash trading" on Kalshi

Reported CFTC probe puts Kalshi trading under scrutiny

The Commodity Futures Trading Commission has reportedly opened an investigation into unusual activity on Kalshi, according to the New York Post. The scrutiny follows billions of dollars in nearly identical crypto trades that prompted concerns about possible “wash trading.”

The Post’s Oct. 9, 2026 report provides no further details about the crypto transactions or the scope of the investigation. It reports a probe into possible misconduct, not a finding that wash trading occurred.

Separate inquiry concerns White House appointment bets

The regulatory scrutiny comes alongside a separate Kalshi investigation into bets predicting that Katie Zacharia would become White House press secretary. The Post, citing the Wall Street Journal’s Friday reporting, said at least three small wagers were placed shortly before news organizations began reporting her selection. Zacharia is a conservative commentator and former Homeland Security spokesperson.

According to the Journal’s review of public Kalshi data, as relayed by the Post, a $19 wager placed around 10:43 p.m. Thursday stood to earn $1,896. Two additional wagers, for $74 and $80, arrived around 1:41 p.m. Friday and stood to return a combined $7,712. A Kalshi spokeswoman declined to discuss the appointment bets with the Post, citing ongoing investigations. The Post also sought White House comment.

Both Kalshi and rival Polymarket face litigation from state authorities, the Post reported. In another case, a US special forces soldier was charged in the spring with allegedly using classified information about the mission to capture Venezuelan President Nicolas Maduro to win more than $400,000 on Polymarket.

What it means for prediction markets

• The two inquiries are distinct: The reported CFTC probe concerns crypto trading activity; Kalshi’s separate investigation concerns wagers on Zacharia’s appointment.
• Large trading totals warrant careful interpretation: The questions surrounding billions of dollars in similar transactions make the outcome of the crypto inquiry relevant to assessments of reported market activity.
• Timing is a signal, not proof: The appointment wagers drew scrutiny for their placement before news reports, but the supplied reporting does not establish that those bettors used nonpublic information.