Kalshi said the CFTC has not been contacted about trading activity worth $5 billion that was "abnormal".

Market forecasting services provider Kalshi stated that it has never been contacted by the U.S. Commodity Futures Trading Commission (CFTC) and does not believe there is any official investigation after reports that these regulatory agencies are monitoring a large number of abnormal trading activities in perpetual futures contracts market ( Ethereum ).

The Wall Street Journal is reporting suspicious trading behavior.

On Tuesday, The Wall Street Journal reported citing sources familiar with the matter that the CFTC is investigating a pattern of buying and selling occurring rapidly around the $5,500 price level.

This review came at a time when Kalshi was reporting rapid growth in business to perpetual futures by one week after its market launch. In May, the company told CNBC that trading volume had already exceeded 1 billion US dollars.

Elisabeth Diana, head of corporate communications at Kalshi stated that the reason for this is "rumours released by competitors", telling Cointelegraph: "We have never been contacted by CFTC and do not believe there has been an official investigation. As we've said before, these data types are a common feature of box-shaped incentive programs found widely in financial markets. Don't believe everything you read about X".

The purchase and sale of the perpetual futures contract was initiated by Ether .

Such a sale took place in one market of Kalshi for perpetual futures contracts where users made profit on the price of an asset without actually buying that asset. In this case, it was the price for Ether .

According to the Journal, purchases worth about $5,500 per item accounted for an estimated Ether sales totaling more than $5 billion over the past month.

The Journal also reported, citing sources familiar with the deal, that Kalshi offered an opportunity for some traders to buy shares in the company if they made a targeted volume of trades. It further noted that the company would waive trading fees and pay monthly cash payments as incentives for large-scale investors to gain exposure to the market.

In a blog post on Wednesday, Kalshi explained that such repeated trading volumes arise from programs that pay market makers to keep buy and sell orders ready for use at specified sizes and in fixed prices. He noted that those payments are in exchange for having pending orders, not the actual volume of trades made.

However, the article did not mention opportunities to buy shares linked to targeted volume purchases as reported directly by the Journal.

Kalshi denies allegations of buying and selling at the market

A market maker helps keep the currency markets functioning normally by continuously offering prices to buy and sell assets, allowing other traders a pair of orders to trade. Market makers can profit from the difference between buying price and selling price but risk losses if the price moves in opposite directions. Traders who accept offered prices are called takers

Kalshi said traders can make a profit when prices change in other markets by buying or selling at the price that market maker suggests.

Fixed-size orders are completely compatible with cases where only one maker placed an order of a fixed size and it was matched by multiple takers.

The company says these trades involve hundreds of different traders matching market maker orders, where the taker side is consistently profitable while the maker side ?? is constantly losing capital.

"This is a sign of real economic activity, not wash trading (because if it's wash trading you will see the volume increase without either party making profit or loss)", Kalshi said.

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