Prediction market platform Kalshi announced on Thursday, February 5, 2025, a major expansion of its market surveillance capabilities, forming an independent advisory committee and partnering with crypto surveillance firm Solidus Labs. This move comes just days before Super Bowl 60, where betting volume on the platform has already exceeded $168 million, marking a 240% increase from the previous year's championship.
The newly established independent committee, which includes Wharton Forensic Analytics Lab director Daniel Taylor and Analysis Group managing principal Lisa Pinheiro, will provide quarterly reports to Kalshi's outside counsel and publish statistics on investigations into suspicious activity. Kalshi has also appointed its lawyer, Robert DeNault, as head of enforcement to coordinate with the committee and hired former US Treasury official Brian Nelson to advise on surveillance and compliance.
Solidus Labs will provide advanced detection systems using machine learning algorithms to analyze trading patterns in real-time, aiming to catch insider trading and market manipulation such as wash trading and spoofing. This initiative is a proactive step as prediction markets face increased scrutiny from regulators like the Commodity Futures Trading Commission (CFTC) and U.S. lawmakers, who recently introduced a bill to restrict trading by government insiders.
In a related development reported by the Financial Times, Kalshi is also seeking regulatory approval from the CFTC to offer margin trades in the U.S., a move aimed at attracting more institutional investors. These trades could be structured similarly to traditional futures contracts.
