Donald Trump Jr.’s prediction-market paymasters have turned on their once-friendly industry rival as regulators scrutinize $5 billion in unusual trading activity. Kalshi, which employs the president’s 48-year-old son as a strategic adviser, is feuding with Crypto.com after almost one million near-identical trades appeared in one of its markets, PunchUp reported Friday. More than $5 billion in trades clustered around roughly $5,500. The Commodity Futures Trading Commission (CFTC) is considering an enforcement investigation, according to the Wall Street Journal. Kalshi denies there is evidence of “wash trading”—which is when economically pointless transactions are made to create a misleading impression of activity. Kalshi gave the Journal Crypto.com trading data for comparison, prompting its rival to reject any suggestion of wash trading. The spat is awkward, reports PunchUp, the Daily Beast’s sister Substack. The two firms helped create the Coalition for Prediction Markets nine months ago to promote standards to protect market integrity.
Tom Latchem exposes the secrets, scandals, and stories that powerful people and institutions want to keep under wraps. Follow all of his reporting at PunchUp on Substack.
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