Kalshi probes suspicious trades tied to Trump press secretary pick, WSJ reports

Oct 9 : Prediction market Kalshi has launched an investigation into suspicious trades tied to the selection of Katie Zacharia as U.S. President Donald Trump's new White House press secretary, the Wall Street Journal reported on Friday, citing a company spokesperson.

Kalshi declined to comment on the report.

Here are some details:

• At least three small wagers were placed before news of Zacharia's selection emerged, potentially netting traders thousands of dollars in profits, the Journal reported.

• A $19 bet placed late on Thursday is set to pay $1,896, while wagers of about $74 and $80 placed on Friday are expected to pay $3,689 and $4,023, respectively.

• Zacharia, a conservative commentator who previously worked briefly at the Department of Homeland Security, had been given about a 1 per cent chance of securing the role on Kalshi before the announcement.

• Prediction markets, where users wager on outcomes ranging from sporting contests to world events, have faced growing scrutiny over the risk of traders profiting from inside information.

• In July, Trump's teleprompter operator came under investigation by the U.S. Commodity Futures Trading Commission over potential insider trading.