Kalshi beefs up insider trading surveillance after sector controversy

Summary

Kalshi has expanded its market surveillance and enforcement framework after a string of controversial prediction-market trades prompted concerns about insider trading. The company has formed an independent surveillance advisory committee and partnered with Solidus Labs and Daniel Taylor, director of the Wharton Forensic Analytics Lab, to bolster detection and deterrence. Kalshi also appointed in-house lawyer Robert DeNault as head of enforcement and added former Treasury official Brian Nelson as an adviser.

Key Points

Kalshi formed an independent surveillance advisory committee to strengthen market integrity.
New partnerships with Solidus Labs and the Wharton Forensic Analytics Lab (Daniel Taylor) aim to improve detection of suspicious trading.
Robert DeNault has been appointed head of enforcement to coordinate surveillance, enforcement and compliance efforts.
Brian Nelson, former Under Secretary for Terrorism and Financial Intelligence, will advise on financial compliance and market integrity.
Actions follow high-profile suspicious bets (for example large wagers around Nicolás Maduro) and a wider PR push backing proposed federal bans on prediction-market insider trading.
Kalshi is deploying Solidus Labs’ agentic trade surveillance tools and emphasises its role in bringing regulation to US prediction markets.

Context and Relevance

Prediction markets have attracted growing regulatory and public scrutiny after several suspicious large trades. Kalshi’s move from PR to concrete surveillance partnerships and new enforcement hires suggests the sector is taking market-integrity risk more seriously. This is relevant to regulators, compliance teams, institutional investors and anyone tracking how event-based trading will be governed going forward.

Why should I read this?

Quick and blunt: if you follow prediction markets, regulation or trading integrity, this matters. Kalshi’s hires and tech tie-ups show the industry is shifting from hand-waving to actually policing trades — which could change who operates these markets and how they’re regulated.

Author note

Punchy: Kalshi isn’t just defending itself — it’s beefing up surveillance and enforcement to rebuild trust. Read the detail if you care about regulatory risk or the future of event-based trading.