Kalshi, a CFTC-regulated prediction market, faces allegations of wash trading regarding its ETH-PERP contracts. Analyst Beni raised concerns on September 20, noting that repetitive trades of exactly $5,500 accounted for 48% to 58% of total volume between September 16 and September 20.
Data indicates a significant discrepancy between market activity and depth. Over a 24-hour period, the platform reported $538.6 million to $539 million in notional volume, while open interest remained at approximately $3.1 million. The largest position on the leaderboard was only $17,598.
IcoBeast.eth, the crypto lead at Kalshi, attributed the volume figures to the platform's reporting conventions, which reflect potential payouts rather than actual cash outlay. He noted that this framework differs from traditional perpetual contract venues, which typically report based on notional exposure.
The exchange also highlighted its rebate program for self-clearing members, which took effect on September 16. The company stated that this program explicitly excludes wash trades and self-matched trades from earning incentives. As of September 21, the CFTC has taken no public enforcement action.
