{"investigation":{"slug":"kalshi","entity_name":"Kalshi","trust_score":42,"severity_base":null,"score_modifier":0,"confidence":0.82,"status":"published","content_type":"investigation","summary":"KalshiEX LLC is a New York-based prediction market exchange founded in 2018 and licensed by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market — the first of its kind in the United States. As of mid-2026 the company is valued at $22 billion and is in talks for a further funding round at a reported $40 billion valuation. Despite its federal regulatory standing, Kalshi faces an escalating pattern of state enforcement actions alleging unlicensed sports gambling, a $36 billion lawsuit from the State of New York, multiple cease-and-desist orders from other state attorneys general, and a growing insider-trading enforcement record that includes a settled CFTC case against former U.S. Representative George Santos and the first-ever CFTC event-contract insider-trading complaint against an active-duty U.S. Army service member.","sections":[{"content":"KalshiEX LLC was founded in 2018 by Luana Lopes Lara and Tarek Mansour, both MIT alumni, after careers at firms including Goldman Sachs, Citadel, and Bridgewater. In November 2020, Kalshi received approval from the CFTC to operate as a Designated Contract Market (DCM), and it launched its first publicly tradeable event contracts in July 2021 — making it the first federally regulated event-contract exchange in the United States. Contracts are structured as binary instruments (yes/no outcomes) each with a $1 face value, covering topics that have included elections, economic indicators, weather, entertainment, and sports. As of March 2026, cumulative event-contract volume on the platform reached $52 billion, with sports-related contracts comprising approximately 80 percent of total volume since July 2024. In March 2026, Kalshi raised a $1 billion Series E at an $11 billion valuation, followed in May 2026 by a $1 billion Series F led by Coatue with participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest, at a $22 billion valuation. As of August 2026, the company was reported to be in advanced talks with Sequoia Capital and Wellington Management to raise at least $750 million at a reported $40 billion valuation, with an IPO being eyed for 2027.","heading":"Company Background","sources":[{"url":"https://www.businesswire.com/news/home/20260507526629/en/Kalshi-Raises-$1-Billion-at-a-$22-Billion-Valuation-as-Institutional-Adoption-Accelerates","name":"Kalshi Raises $1 Billion at $22 Billion Valuation — BusinessWire","type":"news_article","credibility":1},{"url":"https://www.coindesk.com/business/2026/08/13/kalshi-in-talks-with-sequoia-wellington-for-usd750-million-fund-raise-at-usd40-billion-valuation","name":"Sequoia and Wellington in talks to lead $750 million Kalshi funding round — CoinDesk","type":"news_article","credibility":2},{"url":"https://techcrunch.com/2026/05/07/kalshi-doubles-valuation-in-5-months-hitting-22-billion/","name":"Kalshi doubles valuation in 5 months, hitting $22B — TechCrunch","type":"news_article","credibility":1},{"url":"https://www.cnbc.com/2026/03/14/kalshi-prediction-markets-bet-luana-lopes-lara.html","name":"Kalshi co-founder Luana Lopes Lara profile — CNBC","type":"news_article","credibility":1}],"severity":"low"},{"content":"Kalshi's relationship with the CFTC has been both its primary shield and a source of extended litigation. In 2023, Kalshi sought to list contracts tied to the outcome of U.S. congressional elections; the CFTC blocked them on public-interest grounds. Kalshi sued, and the U.S. District Court for the District of Columbia found in Kalshi's favor in September 2024, ruling that the CFTC had exceeded its statutory authority. The D.C. Circuit Court of Appeals denied the CFTC's emergency stay of that ruling, and election contracts went live. In May 2025, the CFTC voluntarily dismissed its appeal, effectively conceding the legal point. On June 10, 2026, the CFTC issued a proposed rulemaking covering event contracts (amending Rule 40.11) and separately issued a Prediction Markets Advisory. Amid the escalating state-enforcement wave of 2026, the CFTC invoked emergency authority in August 2026 to order Kalshi to continue operating in New York, citing its exclusive federal jurisdiction over DCMs. CFTC Chair Michael Selig stated that 'New York has no business regulating these interstate financial markets.' By mid-2026, the CFTC had filed suits against at least six states — Arizona, Connecticut, Illinois, New York, and Minnesota among them — seeking declaratory judgments that federal law preempts state gambling statutes as applied to CFTC-registered contract markets.","heading":"CFTC Regulatory History and Federal Standing","sources":[{"url":"https://law.justia.com/cases/federal/appellate-courts/cadc/24-5205/24-5205-2024-10-02.html","name":"KalshiEX LLC v. CFTC, No. 24-5205 (D.C. Cir. 2024) — Justia","type":"court_filing","credibility":1},{"url":"https://ca.practicallaw.thomsonreuters.com/w-046-9383?transitionType=Default&contextData=(sc.Default)","name":"CFTC Drops Appeal in Kalshi Event Contracts Case — Practical Law","type":"news_article","credibility":1},{"url":"https://www.cftc.gov/PressRoom/PressReleases/9218-26","name":"CFTC Sues New York Over Prediction Markets — CFTC Press Release","type":"regulatory","credibility":1},{"url":"https://www.cftc.gov/PressRoom/PressReleases/9206-26","name":"CFTC Sues Trio of States to Reaffirm Exclusive Jurisdiction — CFTC Press Release","type":"regulatory","credibility":1},{"url":"https://www.coindesk.com/policy/2026/08/11/cftc-orders-kalshi-to-continue-offering-prediction-markets-in-new-york-after-state-lawsuit","name":"CFTC orders Kalshi to continue offering prediction markets in New York — CoinDesk","type":"news_article","credibility":2},{"url":"https://www.cftc.gov/PressRoom/PressReleases/9185-26","name":"CFTC Enforcement Division Issues Prediction Markets Advisory — CFTC","type":"regulatory","credibility":1}],"severity":"medium"},{"content":"On July 31, 2026, New York Governor Kathy Hochul and Attorney General Letitia James announced that New York State had filed suit against KalshiEX LLC, accusing the company of operating an unlicensed gambling platform. The complaint alleged that Kalshi's sports event contracts — covering team wins, seasonal records, point spreads, and player statistics — constitute sports wagering under New York law and that Kalshi had continued operating in New York after receiving a state cease-and-desist order in October 2025. The suit further alleged that Kalshi permitted users aged 18 to 20 to participate, in violation of New York's 21-year minimum age requirement for mobile sports betting. The state sought a court order halting operations, forfeiture of all allegedly illegal gains, restitution to affected users, and civil fines reportedly calculated at triple the company's illegal proceeds — a figure that CNBC and other outlets cited as reaching at least $36 billion, though that represents the statutory maximum of the penalty demand, not a final judgment. Hours after the suit was filed, the CFTC invoked its emergency authority to direct Kalshi to continue operating, framing the case as a federal preemption dispute. Kalshi has maintained that its contracts are federally regulated financial instruments, not state-licensed gambling products, and that federal law shields it from state enforcement.","heading":"State Enforcement Actions: New York","sources":[{"url":"https://ag.ny.gov/press-release/2026/governor-hochul-and-attorney-general-james-announce-new-york-has-sued-kalshi","name":"Governor Hochul and AG James Announce Kalshi Lawsuit — New York AG Press Release","type":"regulatory","credibility":1},{"url":"https://www.cnbc.com/2026/07/31/new-york-sues-kalshi-claims-it-is-illegal-gambling-operation.html","name":"New York sues Kalshi for alleged 'illegal gambling operation' — CNBC","type":"news_article","credibility":1},{"url":"https://www.theblock.co/news/regulation/2026-08-11-cftc-flexes-emergency-authority-kalshi-operating-amid-new-york-lawsuit-411507","name":"CFTC flexes emergency authority to keep Kalshi operating amid New York lawsuit — The Block","type":"news_article","credibility":2},{"url":"https://www.bloomberg.com/news/articles/2026-08-11/cftc-orders-kalshi-to-keep-operating-despite-new-york-suit","name":"CFTC Orders Kalshi to Keep Operating Despite New York Suit — Bloomberg","type":"news_article","credibility":1},{"url":"https://northeasttimes.com/2026/08/03/new-york-sues-kalshi-36-billion-illegal-gambling/","name":"New York Sues Kalshi for $36 Billion — Northeast Times","type":"news_article","credibility":2}],"severity":"high"},{"content":"Connecticut's Department of Consumer Protection Gaming Division issued a cease-and-desist order to Kalshi in December 2025, alleging it was conducting unlicensed online gambling, specifically sports wagering. Kalshi responded by filing suit against Connecticut seeking a preliminary injunction, arguing its contracts are swaps regulated exclusively by the CFTC. U.S. District Judge Vernon Oliver denied Kalshi's preliminary injunction motion, and Kalshi subsequently appealed to the Second Circuit Court of Appeals. On August 27, 2026, Connecticut Attorney General William Tong announced the state had filed its own lawsuit against Kalshi, seeking a court injunction to block the platform from offering unlicensed sports wagers in Connecticut, along with restitution and civil penalties. The CFTC had separately sued Connecticut in April 2026 as part of its multi-state preemption campaign. As of the date of this report, the federal and state proceedings were ongoing.","heading":"State Enforcement Actions: Connecticut","sources":[{"url":"https://portal.ct.gov/ag/press-releases/2026-press-releases/connecticut-sues-kalshi-to-stop-illegal-unlicensed-sports-betting","name":"Connecticut Sues Kalshi to Stop Illegal Unlicensed Sports Betting — Connecticut AG Press Release","type":"regulatory","credibility":1},{"url":"https://ctmirror.org/2026/08/27/ct-sues-kalshi-sports-betting/","name":"CT sues Kalshi over unlicensed sports betting — CT Mirror","type":"news_article","credibility":2},{"url":"https://www.stateagreport.com/news/states-keep-betting-against-kalshi-connecticut-sues-kalshi-for-unlicensed-sports-betting/","name":"States Keep Betting Against Kalshi: Connecticut Sues Kalshi for Unlicensed Sports Betting — State AG Report","type":"news_article","credibility":2},{"url":"https://www.cnbc.com/2026/04/02/prediction-market-lawsuit-regulation-arizona-coonecticut-illinois.html","name":"CFTC sues Arizona, Connecticut, Illinois over prediction market regulation — CNBC","type":"news_article","credibility":1}],"severity":"high"},{"content":"On September 18, 2026, Missouri Attorney General Catherine Hanaway issued cease-and-desist letters to six prediction market operators: Polymarket, Kalshi, Crypto.com, Novig, Underdog, and Robinhood. The letters alleged the companies were offering unlicensed sports betting by disguising wagers as 'event contracts' and declared that operators 'cannot repackage sports bets as event contracts to avoid Missouri law.' The letters demanded the companies obtain licensing from the Missouri Gaming Commission, pay required taxes and fees, implement age verification preventing users under 21 from participating, and come into compliance within 30 days — a deadline of October 18, 2026. Missouri legalized sports wagering via voter approval in 2024, with regulated operations having launched in December 2025. As of the date of this report, Missouri's enforcement deadline had not yet passed and no court proceedings had been initiated in that jurisdiction.","heading":"State Enforcement Actions: Missouri and Others","sources":[{"url":"https://www.kctv5.com/2026/09/18/missouri-ag-sends-cease-desist-letters-prediction-market-operators/","name":"Missouri AG targets Polymarket, Kalshi, others in prediction market crackdown — KCTV5","type":"news_article","credibility":2},{"url":"https://www.washingtonexaminer.com/news/justice/4734769/missouri-orders-prediction-markets-stop-offering-sports-contracts/","name":"Missouri orders prediction markets to stop offering sports contracts — Washington Examiner","type":"news_article","credibility":2},{"url":"https://hoodline.com/2026/09/missouri-ag-hits-polymarket-kalshi-robinhood-with-betting-crackdown/","name":"Missouri AG Targets Polymarket, Kalshi Over Sports Betting — Hoodline","type":"news_article","credibility":3},{"url":"https://www.dlapiper.com/en-us/insights/publications/2026/09/legal-status-at-odds-tracking-developments-in-prediction-markets-and-sports-betting","name":"Legal status at odds: Tracking developments in prediction markets and sports betting — DLA Piper","type":"research","credibility":2}],"severity":"high"},{"content":"On July 31, 2026, the CFTC announced a settled enforcement action against former U.S. Representative George Santos (R-NY) arising from trading activity on Kalshi in February 2026. According to the CFTC order, Santos opened a Kalshi account on February 11, 2026, and traded contracts in a market titled 'Who will attend the State of the Union?' — a market that closed on February 24, 2026, when President Trump delivered the address. The CFTC alleged that Santos made public statements indicating he would attend the speech, including posting video content asking followers which suit he should wear, which allegedly drove the price of 'Yes' contracts from approximately $0.15 to $0.70, before he liquidated his position for a profit. Santos did not in fact attend the State of the Union. Under the settlement, Santos agreed to disgorge $17,569.98 in alleged profits, pay a civil monetary penalty of $17,500, and accept a three-year ban on trading on prediction market platforms. Santos neither admitted nor denied the CFTC's findings. His attorney stated that Santos had agreed to resolve the matter to 'put this matter behind him' and that the conduct involved 'absolutely no intent to deceive any person, nor intent to manipulate any market.' NPR separately reported, citing three unnamed sources, that Santos had deliberately misled the public and that Kalshi had frozen his account upon detecting irregular trades; those sourced claims have not been confirmed in the settled CFTC order, which is the authoritative public record of what was agreed.","heading":"Insider Trading: George Santos Settlement","sources":[{"url":"https://washingtonsun.com/us-news/george-santos-settles-kalshi-insider-trading-case-with-the-cftc?redirected=notus_org","name":"George Santos Settles Kalshi Insider Trading Case With the CFTC — NOTUS/Washington Sun","type":"news_article","credibility":2},{"url":"https://www.crowdfundinsider.com/2026/08/294580-former-congressman-george-santos-to-pay-35000-in-cftc-settlement-tied-to-kalshi-prediction-market-trades/","name":"Former Congressman George Santos To Pay $35,000+ In CFTC Settlement — Crowdfund Insider","type":"news_article","credibility":2},{"url":"https://finance.yahoo.com/markets/options/articles/george-santos-pay-35-000-135200885.html","name":"George Santos to Pay $35,000 Settlement to CFTC Over Kalshi Trades — Yahoo Finance","type":"news_article","credibility":2}],"severity":"high"},{"content":"In April 2026, Kalshi and the CFTC jointly announced enforcement actions against three political candidates who allegedly violated Kalshi's CFTC-approved Rule 5.17(z), which prohibits individuals with direct or indirect influence over an event's outcome from trading on related contracts. The three cases were: Mark Moran, a Democratic candidate in Virginia's U.S. Senate primary; Matt Klein, a sitting Minnesota State Senator running in the Democratic primary for Minnesota's 2nd Congressional District; and Ezekiel Enriquez, a Republican primary candidate in Texas's 21st Congressional District. Each was assessed a fine and a five-year trading suspension. The fines ranged from $539.85 (Klein) to $784 (Enriquez) to $6,229.30 (Moran). In Klein's case, Kalshi noted that its automated systems flagged a trade of less than $100 tied to his own candidacy. All three cases settled without admissions. The CFTC and Kalshi described these as part of a broader enforcement initiative and indicated that additional disclosure requirements for high-risk markets were being considered.","heading":"Insider Trading: Political Candidates Trading on Own Races","sources":[{"url":"https://www.nbcnews.com/business/markets/kalshi-fines-suspends-politicians-insider-trading-elections-rcna341505","name":"Kalshi fines and suspends three politicians for insider trading on their own races — NBC News","type":"news_article","credibility":1},{"url":"https://www.lowenstein.com/news-insights/publications/client-alerts/cftc-and-kalshi-announce-enforcement-actions-targeting-prediction-markets-fctm","name":"CFTC and Kalshi Announce Enforcement Actions Targeting Prediction Markets — Lowenstein Sandler","type":"research","credibility":2},{"url":"https://www.cnn.com/2026/04/22/politics/kalshi-prediction-site-suspend-political-candidates","name":"Kalshi prediction site suspends three political candidates for betting on their own races — CNN","type":"news_article","credibility":1}],"severity":"medium"},{"content":"On April 23, 2026, the U.S. Attorney's Office for the Southern District of New York and the CFTC announced parallel criminal and civil actions against Gannon Ken Van Dyke, described as an active-duty U.S. Army service member alleged to have used classified military intelligence to trade on prediction markets. According to the SDNY indictment and CFTC complaint, Van Dyke was involved in planning and executing a U.S. military operation to capture then-Venezuelan President Nicolás Maduro — referred to in the charging documents as 'Operation Absolute Resolve.' Prosecutors alleged that Van Dyke accessed Polymarket's offshore platform via a VPN and purchased approximately $33,934 in event contracts across multiple Maduro-related markets, including a 'Maduro out by January 31, 2026' contract. When the U.S. military captured Maduro on January 3, 2026, Van Dyke allegedly profited over $404,000. The CFTC's civil complaint invoked the so-called 'Eddie Murphy Rule' (Sections 4c(a)(3) and 4c(a)(4)(C) of the Commodity Exchange Act), which prohibits federal employees from using government-obtained material nonpublic information in futures, options, or swap transactions. The SDNY criminal indictment additionally charged Van Dyke with wire fraud and money laundering. Legal commentators described this as the first case testing the Eddie Murphy Rule's application to prediction market contracts. Note: while Kalshi's platform was cited in the CFTC's broader enforcement advisory announced the same day, the Van Dyke trading is alleged to have occurred on Polymarket, not directly on Kalshi; the case is included here because the CFTC framed it as part of its prediction-market insider-trading enforcement initiative that also directly implicates Kalshi.","heading":"Insider Trading: Army Soldier and Classified Intelligence (Van Dyke)","sources":[{"url":"https://www.skadden.com/insights/publications/2026/04/sdny-cftc-announce-parallel-enforcement-actions","name":"SDNY, CFTC Announce Parallel Enforcement Actions Against U.S. Army Soldier — Skadden","type":"research","credibility":2},{"url":"https://www.mofo.com/resources/insights/260428-doj-and-cftc-charge-army-soldier","name":"DOJ and CFTC Charge Army Soldier for Prediction Markets Insider Trading — Morrison Foerster","type":"research","credibility":2},{"url":"https://www.sidley.com/en/insights/newsupdates/2026/05/the-first-prediction-market-insider-trading-case","name":"The First Prediction Market Insider Trading Case — Sidley Austin","type":"research","credibility":2},{"url":"https://www.lowenstein.com/news-insights/publications/client-alerts/cftc-and-kalshi-announce-enforcement-actions-targeting-prediction-markets-fctm","name":"CFTC and Kalshi Announce Enforcement Actions Targeting Prediction Markets — Lowenstein Sandler","type":"research","credibility":2}],"severity":"high"},{"content":"In June 2026, Kalshi published data indicating it had referred 32 suspected insider-trading cases to the CFTC during Q2 2026 alone, and had opened more than 200 internal investigations during the first half of 2026 covering 'trading activity that may have involved material non-public information.' The company stated it employs internal monitoring systems, third-party vendor tools, trading-pattern analysis, and open-source intelligence to detect potentially improper activity. Kalshi stated it can freeze accounts during investigations and refer suspicious cases to federal regulators. The volume of referrals is notable for its scale. Kalshi characterized the disclosures as evidence of robust self-policing; critics and legal commentators have noted that the same figures also reflect the breadth of suspected manipulation on the platform. Kalshi has publicly stated it is considering additional disclosure requirements for high-risk markets, including potential requirements for users to disclose their employers.","heading":"Insider Trading Scale and Detection Program","sources":[{"url":"https://cryptobriefing.com/kalshi-insider-trading-cftc-referrals/","name":"Kalshi Insider Trading CFTC Referrals — Crypto Briefing","type":"news_article","credibility":2},{"url":"https://kalshi.com/policy-center/insider-trading","name":"Stopping insider trading — Kalshi Policy Center","type":"official","credibility":2},{"url":"https://news.kalshi.com/p/kalshi-political-insider-trading-enforcement-update","name":"Enforcement update: Kalshi continues crackdown on political insider trading — Kalshi Blog","type":"official","credibility":2}],"severity":"medium"},{"content":"The core legal question underlying most of Kalshi's 2026 regulatory exposure is whether event contracts offered by a CFTC-regulated DCM are insulated from state gambling law under the preemption doctrine of the Commodity Exchange Act. Kalshi argues that as a federally licensed DCM, its products fall exclusively under federal jurisdiction. Multiple states — including New York, Connecticut, Missouri, Arizona, Illinois, and Minnesota — disagree, contending that the contracts are functionally identical to sports wagering as defined in their respective statutes. The CFTC has aligned itself squarely with Kalshi on this question, filing preemption suits against at least six states as of September 2026. Legal commentators have noted a growing circuit split and have assessed the question as increasingly likely to reach the U.S. Supreme Court by 2027. None of the state enforcement proceedings against Kalshi had reached a final adjudication on the merits as of the date of this report; Kalshi's preliminary injunction loss in Connecticut was a procedural ruling, not a ruling on the merits of the federal preemption claim.","heading":"Federal-State Jurisdictional Dispute","sources":[{"url":"https://www.nortonrosefulbright.com/en-us/knowledge/publications/ad8a494a/prediction-markets-at-a-crossroads-preemption-enforcement-and-rulemaking","name":"Prediction markets at a crossroads: Preemption, enforcement and rulemaking — Norton Rose Fulbright","type":"research","credibility":2},{"url":"https://www.coindesk.com/policy/2026/04/24/u-s-cftc-adds-new-york-to-string-of-states-its-suing-to-stop-prediction-market-pushback","name":"CFTC adds New York to string of states it is suing to stop prediction market pushback — CoinDesk","type":"news_article","credibility":2},{"url":"https://www.sheppard.com/insights/blogs/cftc-sues-minnesota-bringing-prediction-markets-preemption-fight-to-six-states","name":"CFTC Sues Minnesota, Bringing Prediction Markets Preemption Fight to Six States — Sheppard","type":"research","credibility":2},{"url":"https://www.dlapiper.com/en-us/insights/publications/2026/09/legal-status-at-odds-tracking-developments-in-prediction-markets-and-sports-betting","name":"Legal status at odds: Tracking developments in prediction markets and sports betting — DLA Piper","type":"research","credibility":2}],"severity":"high"}],"timeline":[{"date":"2018-01-01","event":"Kalshi founded by Luana Lopes Lara and Tarek Mansour.","source":"Britannica Money / TechFundingNews","source_url":"https://techfundingnews.com/from-algeria-and-brazil-to-wall-street-unicorn-how-two-immigrant-founders-raised-185m-to-build-uss-first-regulated-prediction-market/"},{"date":"2020-11-01","event":"CFTC approves Kalshi as a Designated Contract Market — the first U.S. federally regulated event-contract exchange.","source":"Britannica Money","source_url":"https://www.britannica.com/money/Kalshi-Inc"},{"date":"2021-07-01","event":"Kalshi launches its first publicly tradeable event contracts.","source":"Britannica Money","source_url":"https://www.britannica.com/money/Kalshi-Inc"},{"date":"2024-09-06","event":"U.S. District Court for D.C. rules in Kalshi's favor, finding the CFTC exceeded its authority in blocking congressional election contracts.","source":"Justia — KalshiEX LLC v. CFTC, No. 24-5205","source_url":"https://law.justia.com/cases/federal/appellate-courts/cadc/24-5205/24-5205-2024-10-02.html"},{"date":"2025-05-07","event":"CFTC voluntarily dismisses its appeal of the election-contracts ruling, cementing Kalshi's right to list political event contracts.","source":"Practical Law — CFTC Drops Appeal in Kalshi Event Contracts Case","source_url":"https://ca.practicallaw.thomsonreuters.com/w-046-9383?transitionType=Default&contextData=(sc.Default)"},{"date":"2025-10-01","event":"New York issues a cease-and-desist order to Kalshi over alleged unlicensed sports wagering.","source":"New York AG Press Release","source_url":"https://ag.ny.gov/press-release/2026/governor-hochul-and-attorney-general-james-announce-new-york-has-sued-kalshi"},{"date":"2025-12-01","event":"Connecticut Department of Consumer Protection issues a cease-and-desist order to Kalshi over alleged unlicensed online gambling/sports wagering.","source":"Connecticut AG Press Release","source_url":"https://portal.ct.gov/ag/press-releases/2026-press-releases/connecticut-sues-kalshi-to-stop-illegal-unlicensed-sports-betting"},{"date":"2026-01-03","event":"U.S. military operation captures Venezuelan President Nicolás Maduro; Army soldier Gannon Van Dyke allegedly profits over $404,000 on classified-intelligence-based Polymarket trades.","source":"Skadden — SDNY, CFTC Announce Parallel Enforcement Actions Against U.S. Army Soldier","source_url":"https://www.skadden.com/insights/publications/2026/04/sdny-cftc-announce-parallel-enforcement-actions"},{"date":"2026-02-11","event":"Former Rep. George Santos opens a Kalshi account and begins trading State of the Union attendance contracts.","source":"NOTUS/Washington Sun — George Santos Settles Kalshi Insider Trading Case With the CFTC","source_url":"https://washingtonsun.com/us-news/george-santos-settles-kalshi-insider-trading-case-with-the-cftc?redirected=notus_org"},{"date":"2026-02-24","event":"State of the Union address; Santos does not attend. Kalshi reportedly freezes Santos's account after detecting irregular trading activity.","source":"NOTUS/Washington Sun","source_url":"https://washingtonsun.com/us-news/george-santos-settles-kalshi-insider-trading-case-with-the-cftc?redirected=notus_org"},{"date":"2026-03-19","event":"Kalshi raises $1 billion Series E at an $11 billion valuation.","source":"Bloomberg — Kalshi Gets $1 Billion in New Funding at $22 Billion Valuation","source_url":"https://www.bloomberg.com/news/articles/2026-03-19/kalshi-gets-1-billion-in-new-funding-at-22-billion-valuation"},{"date":"2026-04-02","event":"CFTC files preemption suits against Arizona, Connecticut, and Illinois, arguing federal law bars those states from enforcing gambling statutes against CFTC-registered prediction markets.","source":"CNBC","source_url":"https://www.cnbc.com/2026/04/02/prediction-market-lawsuit-regulation-arizona-coonecticut-illinois.html"},{"date":"2026-04-23","event":"SDNY and CFTC announce parallel criminal and civil charges against Army soldier Gannon Ken Van Dyke for alleged insider trading on prediction markets using classified military intelligence about Operation Absolute Resolve.","source":"Skadden — SDNY, CFTC Announce Parallel Enforcement Actions","source_url":"https://www.skadden.com/insights/publications/2026/04/sdny-cftc-announce-parallel-enforcement-actions"},{"date":"2026-04-22","event":"Kalshi and CFTC jointly announce enforcement actions against three political candidates — Matt Klein, Ezekiel Enriquez, and Mark Moran — for trading on their own election races in violation of Kalshi Rule 5.17(z).","source":"CNN Politics","source_url":"https://www.cnn.com/2026/04/22/politics/kalshi-prediction-site-suspend-political-candidates"},{"date":"2026-04-24","event":"CFTC files preemption suit against New York, seeking to block state enforcement of gambling laws against CFTC-regulated prediction markets.","source":"CoinDesk","source_url":"https://www.coindesk.com/policy/2026/04/24/u-s-cftc-adds-new-york-to-string-of-states-its-suing-to-stop-prediction-market-pushback"},{"date":"2026-05-07","event":"Kalshi raises $1 billion Series F at a $22 billion valuation, led by Coatue, with participation from Sequoia, a16z, Paradigm, Morgan Stanley, and ARK Invest.","source":"TechCrunch","source_url":"https://techcrunch.com/2026/05/07/kalshi-doubles-valuation-in-5-months-hitting-22-billion/"},{"date":"2026-07-31","event":"New York AG Letitia James files suit against Kalshi alleging unlicensed gambling; lawsuit seeks at least $36 billion in penalties. CFTC invokes emergency authority to keep Kalshi operating in New York.","source":"New York AG Press Release / Bloomberg","source_url":"https://ag.ny.gov/press-release/2026/governor-hochul-and-attorney-general-james-announce-new-york-has-sued-kalshi"},{"date":"2026-07-31","event":"CFTC announces settled enforcement action against former Rep. 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