Kalshi, the U.S.-regulated prediction market platform, is facing scrutiny after allegations surfaced that it paid social media influencers to defame its rival, Polymarket, and its CEO Shayne Coplan. According to a Pirate Wires report, Kalshi allegedly enlisted high-profile figures, including former NFL star Antonio Brown, to publicly discredit Coplan following an FBI raid on his home. The raid is part of an investigation into whether Polymarket was operating an unlicensed commodities exchange. The influencers reportedly made disparaging remarks about Coplan, including suggesting that he was guilty of criminal behavior similar to that of FTX’s Sam Bankman-Fried.

These revelations have raised questions about Kalshi’s ethics, especially considering the platform’s position as a regulated market. Critics argue that Kalshi’s actions contradict its image as a responsible entity in the regulated space. Meanwhile, a retaliatory smear campaign seems to have emerged, with rumors circulating that Kalshi itself is under investigation by the Federal Trade Commission (FTC), although these claims lack substantiated evidence.

The controversy comes at a pivotal moment for prediction markets, which have gained prominence after forecasting the 2020 U.S. presidential election results. As the industry evolves, competition between platforms like Kalshi and Polymarket is intensifying, and the regulatory landscape could shift significantly under a new U.S. administration. Whether these developments will ultimately help or hinder the growth of prediction markets remains to be seen.