Kalshi Refutes Wash‑Trading Allegations, Cites Market Maker Activity

Kalshi, a regulated exchange, has responded to recent accusations that it fabricated cryptocurrency trading volume. The firm explained that the uniform trade size observed over the weekend was generated by a market maker it employs to keep orders on its order book.

Market Maker’s Role

The exchange stated the market maker is paid to provide liquidity and that the repeated trade pattern was a result of its activity, not intentional manipulation by Kalshi.

Losses to Faster Traders

Kalshi added that the market maker was losing money to faster traders, implying that the observed trading pattern reflected competitive market dynamics rather than wash‑trading.