Kalshi said nearly $5 billion in similarly sized Ether perpetual trades reflected its liquidity incentive programs and rejected allegations that the activity was wash trading.

Prediction markets operator Kalshi said it has not been contacted by the Commodity Futures Trading Commission and does not believe there is any formal examination, after a report that the regulator was reviewing a flurry of trading activity in its Ether perpetual futures market.

On Tuesday, The Wall Street Journal reported that the CFTC is examining a pattern of rapid trades clustered around $5,500, citing a person familiar with the matter. The trading pattern has prompted allegations of wash trading.

The scrutiny comes as Kalshi has reported rapid growth in its perpetual futures business. A week after launching its perpetual futures markets in May, the company told CNBC that trading volume had surpassed $1 billion.

Elisabeth Diana, head of communications at Kalshi, described the discourse as “rumors seeded by competitors.”

“We have not been contacted by the CFTC and don’t believe there is any formal examination,” Diana told Cointelegraph. “As we’ve said, these data patterns are typical of liquidity incentive programs and common in financial markets. Don’t believe everything you read on X.”

The trades took place in one of Kalshi’s markets for perpetual futures, where users speculate on the price of an asset without buying it; in this case, the price of Ether.

The trades of roughly $5,500 each accounted for over $5 billion in Ether perp volume over the past month, according to the Journal.

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