Kalshi Denies Formal CFTC Investigation Amid Scrutiny Over $5B in Ether Perpetual Trades

Kalshi denied reports of a formal Commodity Futures Trading Commission investigation, stating it has not been contacted by the regulator regarding trading in its Ether perpetual futures. The clarification follows media reports that the CFTC is reviewing market activity after nearly 1 million trades clustered around $5,500 generated over $5 billion in volume over the past month. These repetitive transactions accounted for up to 58% of notional daily volume and drove volume-to-open-interest ratios to 174x. Kalshi strongly denied wash trading allegations, explaining the pattern stems from automated market makers posting fixed resting orders filled by distinct takers.