US CFTC investigates Kalshi's washout trading, Kalshi denies it

The US Commodity Futures Trading Commission (CFTC) is investigating whether Kalshi has engaged in washout trading, alleging that there have been nearly one million abnormal trades of similar amounts in the Kalshi platform's Ethereum futures market since August. Kalshi denies the existence of false trading in his blog post and explains that duplicate quotes are market maker behavior. Co founder Luana Lopes Lara stated that it is normal for exchanges to take such measures to attract large traders into new markets. (Source: The Wall Street Journal)