Published on: May 21, 2026, 02:20h.
Updated on: May 21, 2026, 02:25h.
Kalshi takes legal action against KalshiLies.com for defamatory statements regarding exchange operations
The conflict revolves around Kalshi Trading LLC’s role as “the house”
Kalshi insinuates critics may hold conflicting financial interests
Attorneys representing the prediction market platform, Kalshi, have issued a cease-and-desist notice to the unknown operators of KalshiLies.com. They allege that the website has disseminated “false, misleading, defamatory, and commercially disparaging information” about Kalshi.
KalshiLies.com has ties to FairPredicts.com, which brands itself as “a nonpartisan market integrity watchdog” aiming to hold the prediction market sector accountable.
“We monitor the regulatory practices of prediction market operators, their advertising strategies, and the alignment of their actions with their commitments,” notes the site, adding, “Currently, the response is frequently negative,” emphasized in bold.
Kalshi asserts it has “grounds to suspect” that these websites are financed by “entities holding direct competitive or monetary interests.”
Point of Contention
The cease-and-desist letter dated May 20, authored by Kalshi’s General Counsel Richard Heaslip and legal adviser Maria Vouterakou, demands an immediate withdrawal of assertions claiming that Kalshi profits from customer losses via an affiliated market-making entity.
Gaming analyst Dustin Gouker shared the correspondence on X on May 21, clarifying he had no connection to the implicated websites and was unaware of their operators.
Kalshi’s primary concern revolves around Kalshi Lies’ assertion that the company’s statement “we aren’t the house” is deceptive. The site identifies Kalshi affiliate Kalshi Trading LLC as “the house” due to its role as a trading counterparty for some users.
“Kalshi operates its own market maker on the exchange … It’s named Kalshi Trading LLC — an affiliate that profits from every customer transaction, regardless of outcome,” the site alleges.
‘Clearly False’
Kalshi counters what it describes as “clearly false” claims:
“Kalshi Trading LLC is not ‘the house.’ It does not guarantee profits from customer actions, does not profit ‘on every customer trade, win or lose,’ and does not systematically engage in every transaction on the platform. Instead, Kalshi Trading LLC is among several market makers that supply liquidity on the exchange.”
The letter continues:
“Market makers are typical participants in regulated financial spheres and fulfill a recognized function by ensuring liquidity and orderly trading.”
Kalshi further emphasizes that Kalshi Trading LLC operates at a loss, serving solely to bolster market liquidity. The company claims it accounts for less than 1% of total trading volume on the platform.
Kalshi demands the immediate removal of the alleged defamatory statements, as well as a cessation of all further dissemination of misleading information.
As of the time of writing, neither Fair Predicts nor Kalshi Lies had retracted any of the disputed statements.