Prediction market Kalshi hires ex-FBI agent to lead anti-money-laundering effort
Kalshi has hired former FBI agent Sean Fern to build its first anti-money-laundering team as the prediction market faces growing scrutiny from state and federal regulators. Fern said he will focus on customer identity checks, source-of-funds reviews, sanctions compliance, and referrals of suspicious activity to law enforcement. The company has handled over $260 billion in bets this year, triple its 2025 total, according to TickerTracker.
Kalshi recruited Sean Fern, a onetime Brooklyn federal prosecutor, to create its first anti-money-laundering unit. He later became an FBI special agent on the international corruption squad, helping direct the 1MDB bribery inquiry. He also served as a lead prosecutor in the OneTaste forced-labor conspiracy trial.
Kalshi’s betting volume has surpassed $260 billion this year, triple all of 2025, according to TickerTracker. PitchBook values the company near $40 billion; it has 250 employees and plans to double that headcount within six months. Regulators have examined insider trading and manipulation on prediction markets.
Kalshi’s compliance buildout could affect traders, financial partners, and regulators by making identity checks and suspicious-activity reviews more common. Stronger safeguards may deter illicit use, but they could also add friction for ordinary users and raise expectations for rival prediction markets. As scrutiny grows, how these platforms balance growth with oversight may shape public trust in election- and policy-related betting.