The exchange filed notice with the Commodity Futures Trading Commission on September 28 to shutter the Volume Incentive Program, which has operated since early 2023 to boost liquidity through trader rewards. While the filing offers no explicit justification for the closure, the timing follows widespread allegations of wash trading on the platform. Reports indicate that regulators have been examining patterns where identical Ether perpetual transactions—often priced near $5,500—accumulated billions in volume over a single month.
Kalshi denies any wrongdoing, asserting that the repetitive trades stem from legitimate market-maker arrangements rather than coordinated manipulation. The company maintains that self-matching is blocked by design and that its perpetual liquidity programs remain distinct from the incentive structure now being retired. Despite the controversy, the platform is experiencing record activity, with September volume hitting $52.98 billion through the 29th. Market confidence appears unshaken, as Kalshi is reportedly in advanced talks to secure $1 billion in new funding at a $40 billion valuation, significantly higher than its previous $22 billion assessment.
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