Amid concerns of inadequate integrity standards, prediction platform Kalshi announced on Thursday a major revamp of its surveillance and enforcement structure.
Key Takeaways
- The new enforcement policy is split into three pillars: detect, intestigate, and enforce.
- All trades on Kalshi are public.
- Kalshi supports a bill to ban government officials from trading on private government information.
Kalshi’s new surveillance partnerships were signed with Solidus Labs and the director of the Wharton Forensic Analytics Lab, Daniel Taylor. They will be responsible for monitoring trades for signs of abuse, nefarious interference, and undesirable interruptions.
Tarek Mansour, Kalshi, CEO, said on X that the company banned insider trading by taking the same approach used by the stock market.
Mansour says Kalshi’s new surveillance methodology is split into three pillars: detect, investigate, and enforce.
The framework begins with detecting and flagging suspicious patterns in real time by pushing trades through pattern-recognition models. Suspicious trades will be marked if they don’t fit into the usual market or budget size for a particular consumer.
A market regulation team will then investigate data and contact traders, if needed.
If Kalshi’s team determines any wrongdoing, possible enforcement actions include warnings, fines, and referrals to the Commodities Futures Trading Commission (CFTC) and/or the Department of Justice.
On Insider Trading.
— Tarek Mansour (@mansourtarek_) February 5, 2026
Some say insider information can make prediction markets more accurate. But the same argument can be made for stock markets, where insider trading is banned.
Insider trading erodes trust. When people believe a market is unfair, they stop trading. Liquidity…
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Ramping up security, integrity efforts
Kalshi’s status as a CFTC-regulated entity means it already has several basic security and integrity features in place. That includes Know-Your-Customer and Anti-Money Laundering checks on every user before they can place a trade.
All trades on Kalshi are also public. Mansour noted that Kalshi received many tips from online whistleblowers and ran over 200 investigations and froze several accounts over the last few years.
Kalshi enlisted former Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian Nelson, as an adviser on market integrity.
Kalshi lawyer Robert DeNault was promoted to head of enforcement, while Lisa Pinheiro, managing principal at Analysis Group, and Taylor, the Wharton Forensic Analytics Lab director, were added to the Independent Surveillance Advisory Committee.
Additionally, Kalshi added Responsible Trading and Market Integrity hubs to its online platform. Consumers will find information about their protections and Kalshi’s regulatory standards.
“Kalshi was the first to regulate prediction markets in America,” said DeNault. “We’re now bringing on some of the industry’s leading surveillance experts to build and guide the future of prediction market compliance.”
A response to state regulators?
One of the primary concerns expressed by state gaming regulators, many of whom are in legal battles with prediction platforms, is that prediction markets don’t offer the same consumer protections as legal sportsbooks.
Kalshi's recent changes should add to its credibility on protection and security fronts.
Additionally, Mansour recently said his company supports a bill that would ban government officials from making bets on private government business.
