Overview
- Public analysts publicly flagged repetitive, fixed‑size Ether perpetual trades and very high turnover ratios between September 20 and 22, prompting the CFTC to open a review of the activity.
- The independent analyses found large shares of notional volume clustered at nearly identical dollar amounts, volume‑to‑open‑interest ratios from about 61x to 174x, and roughly 120,000 trades that looked anomalous in aggregate.
- Kalshi rejects wash‑trading claims and says the pattern comes from an authorized liquidity‑provision program that posts standardized order sizes and from a temporary fee rebate for eligible self‑clearing members.
- The exchange says its internal records show hundreds of distinct takers trading against a single market maker, that takers were often profitable, and that its rulebook blocks self‑trading and prohibits coordination.
- Because public trade feeds do not identify counterparties, the dispute highlights limits of open data and could shape future rules on fee design, surveillance reporting, and oversight as U.S. regulated perpetual markets expand.