Kalshi Exchange Ends Advisory Contract With Donald Trump Jr.
Kalshi Exchange terminated its advisory agreement with Donald Trump Jr. following his venture capital firm's significant investments in rival platform Polymarket.
The prediction market platform Kalshi Exchange ended its advisory contract with Donald Trump Jr. on Thursday, citing a conflict of interest. The decision followed a series of investments by 1789 Capital, a venture capital firm led by Trump Jr., into Kalshi Exchange's primary competitor, Polymarket. These investments included a $300 million injection in August and a total estimated investment of approximately $500 million.
Trump Jr. had served as a strategic advisor to Kalshi Exchange since January 2025 and held a stake reportedly worth $300,000. While he has exited his role at Kalshi Exchange, he continues to serve as an advisor to Polymarket. A company spokesperson described the termination as a mutual agreement, noting that discussions began in August after 1789 Capital led Polymarket's most recent funding round.
This corporate shift occurs as the prediction market industry faces mounting regulatory pressure. Democrats, who now hold majorities in both the House and Senate, have signaled increased scrutiny. Senator Elizabeth Warren has specifically pledged to target insider trading on these platforms. Additionally, critics have alleged self-dealing regarding the United States Commodity Futures Trading Commission's recent authorization for Kalshi Exchange to offer trading on assets without owning them.
Separately, Kalshi Exchange is seeking new funding at a $65 billion valuation. This follows an October round co-led by Sequoia and Wellington that valued the company at $40 billion, and a prior round led by Coatue that valued the firm at $22 billion.
