Kalshi Clears 'Backlog' of Suspicious Activity, Plans to Disclose Actions Against Insider Trading
Decrypt
by André BeganskiFebruary 23, 2026
AI-Generated Deep Dive Summary
Prediction market platform Kalshi is taking significant steps to address insider trading and market manipulation by clearing a backlog of suspicious activities. The company has announced plans to disclose disciplinary actions against users involved in violations, with some cases already referred to law enforcement. Robert DeNault, Kalshi’s head of enforcement, revealed that the legal team has spent months investigating potential trading irregularities, including high-profile incidents like the $400,000 payout linked to the capture of Venezuelan President Nicolás Maduro on rival platform Polymarket. This shift comes amid growing skepticism about market integrity, particularly in the crypto space.
Kalshi’s efforts aim to professionalize its enforcement framework, aligning it with major stock exchanges like the New York Stock Exchange and Nasdaq. DeNault emphasized the importance of distinguishing legitimate information asymmetry from illegal insider trading, which he argues erodes trust in markets. The platform is focusing on “source agency” trading, where individuals connected to events or contracts are barred from participating if they have access to nonpublic information. For example, staff involved in planning high-profile events like the Super Bowl halftime show could face restrictions if they misuse their access for personal gain.
The issue of insider trading in prediction markets has sparked debate. While some argue it enhances market accuracy, DeNault counters that such practices undermine trust and liquidity. Crypto platforms like Kalshi operate in a largely unregulated environment, making self-regulation crucial for maintaining credibility. Kalshi’s approach to enforcement could set a precedent for other decentralized finance (DeFi) and crypto platforms striving to build trustworthy ecosystems.
As the crypto industry grapples with questions of market integrity
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Originally published on Decrypt on 2/23/2026