Kalshi Faces Regulatory Scrutiny After Nearly $5B in Repetitive Ether Trades

Kalshi is facing regulatory scrutiny after a huge volume of nearly identical trades reportedly flooded a single Ether market, according to The Wall Street Journal.
Since August, nearly one million trades of roughly $5,500 each have reportedly been placed in the same market.
Together, those transactions amount to around $5 billion in total trading activity.
The unusual pattern has drawn attention because the trades were highly repetitive in both size and structure.
Regulators are now examining whether the activity reflects legitimate market participation, automated strategies or behavior that could distort reported volume and liquidity.
The case highlights a growing challenge for prediction and event markets as trading activity scales and increasingly sophisticated automated strategies enter the space.
For Kalshi, the key issue is whether regulators view the activity as normal market-making behavior or as something requiring tighter oversight and controls.