Kalshi Refers 32 Insider-Trading Cases to CFTC as Agency Shrinks to 20-Year Low

1 articles · Updated · The New York Times · Aug 12

32 possible insider traders were referred by Kalshi to the CFTC in the three months through June, a fresh sign that prediction markets are drawing suspected misuse of nonpublic information.
20 investigations are already underway based on Kalshi’s evidence, but the CFTC has brought civil charges against only three prediction-market bettors so far.
The enforcement gap is widening as the agency operates with its smallest staff in at least 20 years after Trump administration cuts, even as traders wager billions of dollars a month across 13 firms.
The CFTC also has authority to curb insider-trading risks by barring markets where only a few people know the outcome, yet it has declined to do so despite pressure, especially from sports leagues.