Kalshi Expands Surveillance to Fight Insider Trading

Prediction market platform Kalshi is stepping up its enforcement efforts with new surveillance tools, expert partnerships, and leadership changes aimed at stopping insider trading and market manipulation.

Key Takeaways

• Kalshi announced major upgrades to its market surveillance system and compliance framework.
• The company formed an independent Surveillance Advisory Committee and partnered with Solidus Labs and Wharton Forensic Analytics Lab.
• CEO Tarek Mansour publicly denounced insider trading, directly opposing views shared by rival platform Polymarket.
• These developments come just days before the Super Bowl, a peak trading period for prediction markets.

What Happened?

Kalshi is reinforcing its regulatory shield by enlisting high-level experts and boosting its tech stack. This includes naming a new Head of Enforcement, expanding its internal and external monitoring systems, and actively investigating suspicious trades. The move comes as the company aims to distinguish itself from unregulated prediction markets and build trust ahead of a high-traffic event: the Super Bowl.

Kalshi’s New Surveillance Framework

Kalshi unveiled an aggressive plan to strengthen its surveillance and enforcement structure by announcing:

• An independent Surveillance Advisory Committee, including Daniel Taylor, Director of the Wharton Forensic Analytics Lab, and Lisa Pinheiro, a market manipulation expert at Analysis Group.
• A new partnership with Solidus Labs, whose HALO platform uses AI to detect advanced trading abuse.
• Engagement of Brian Nelson, former Under Secretary of the Treasury for Terrorism and Financial Intelligence, to advise on compliance.
• Creation of public Responsible Trading and Market Integrity hubs to educate users on how the platform is regulated.

Kalshi CEO Tarek Mansour emphasized that market integrity is non-negotiable, writing in a public statement:

His remarks stood in direct contrast to Polymarket CEO Shayne Coplan, who has previously said insider trading could be beneficial for market accuracy. Mansour warned that normalizing such behavior could lead to an incentive system that encourages illegal information leaks.

The Poirot System: Kalshi’s Watchdog

Central to Kalshi’s strategy is Poirot, the company’s proprietary trade surveillance engine, inspired by the famous detective. Poirot uses behavioral and pattern-based models to flag unusual trades in real time, especially those that are disproportionately large or oddly timed. Suspicious accounts are then reviewed by a specialized regulation team which checks KYC data, funding sources, and past behavior.

According to Kalshi, over the past year:

• More than 200 investigations were conducted into suspicious trades.
• Over a dozen cases became active investigations.
• Several accounts were referred to law enforcement agencies.

The platform has also appointed Robert DeNault as its new Head of Enforcement. DeNault, a former white-collar attorney at White & Case LLP, will coordinate with both internal teams and external advisors to strengthen Kalshi’s compliance strategy. DeNault said:

Preparing for the Super Bowl Rush

The timing of this enforcement push is not coincidental. The Super Bowl draws massive user engagement, and Kalshi’s markets have already seen bets totaling more than $169 million for the big game. Users are also active on side markets, including predictions on the opening halftime show song.

Kalshi appears to be sending a clear message: it wants no tolerance for manipulation, especially during high-stakes events.

Controversy and Clarification

Recently, Kalshi came under scrutiny after dismissing a report that claimed users lost more money on prediction markets than on gambling sites. The company initially labeled the report as “an extortion,” but later walked back the comment, stating:

Despite the momentary controversy, Kalshi’s recent moves suggest a broader commitment to transparency, safety, and institutional-grade oversight.

CoinLaw’s Takeaway

I find Kalshi’s efforts refreshing in a space that has often operated in regulatory gray zones. In my experience, platforms that invest in compliance infrastructure early tend to outlast those that cut corners. The fact that Kalshi is applying tools used by traditional crypto exchanges and opening its doors to outside advisors shows they’re building for the long run. It’s not just about policing traders, it’s about creating a market where everyone feels the game is fair. That’s how trust is built, and that’s how volume and user retention grow sustainably.

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