Kalshi CEO Announces New Steps to Fight Insider Trading

The industry’s leading prediction operator is cracking down on insider trading.

Kalshi CEO Tarek Monsour has announced new regulations to combat insider trading on X. The post takes a strong stance against the illegal practice, and the operator is proving that by adding new measures to prevent it.

Insider trading erodes trust. When people believe a market is unfair, they stop trading,” Mansour’s X post reads. “Liquidity dries up, volume collapses, and the market dies. Also, allowing it could incentivize bad actors to leak information they shouldn’t.

The CEO shared their ability to conduct real-time monitoring to detect suspicious gaming, which is part of investigations by Kalshi’s in-house market regulation team. If the company finds enough to suspect insider trading, penalties will range from fines and a warning all the way to federal prosecution by the Department of Justice.

According to Kalshi, over 200 investigations have been opened into suspected insider trading. Over a dozen have been elevated to active cases, and now official charges or other details have been revealed.

Monsour also mentioned several upgrades to their current systems, which include naming criminal attorney Robert DeNault as Head of Enforcement.

Kalshi Adds Massive Star

Monsour’s post about insider trading came just hours before major news broke for the operators. 

NBA superstar Giannis Antetokounmpo announced he was joining Kalshi as an investor. The former NBA MVP and champion is one of the biggest names in sports, making his addition a significant win for Kalshi. With more industry rivals popping up, adding a name like Giannis is a big deal.

There are some questions about the Giannis news and its timing, but no actual evidence of improper actions has been provided. Given Giannis’s humble beginnings and the incredible wealth he has amassed from his NBA career, it's hard to imagine him taking part in a form of insider trading. 

The Giannis deal brings Kalshi more exposure, but also gives them a star known as one of the true “good guys” in sports. That can help soften some of Kalshi’s rough reputation and bring a level of legitimacy reserved for sportsbooks.