Kalshi's trading activity in an ether perpetual-futures market has drawn scrutiny from federal regulators after nearly 1 million trades of roughly $5,500 each were executed since August, The Wall Street Journal reported Tuesday.

The Commodity Futures Trading Commission is reviewing the trading data, the report said, citing an unnamed person familiar with the matter.

Trades of the same size accounted for more than one-third of activity in the market in recent weeks and exceeded $5 billion in ether contract volume over the past month, according to the report.

Kalshi denied the allegations in a post on its website.

"We mechanically block self-trades, and have surveillance watching for pre-arranged trades with a partner. We've seen no evidence of collusion or wash trades," the company said.

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