TLDR
- The CFTC ordered Gabriel Perez, formerly a teleprompter operator at the White House, to pay $172,000 for trading on Kalshi using privileged information
- Perez accessed presidential speeches approximately 60 minutes before public delivery and wagered on contracts predicting specific presidential mentions
- Between December 2025 and February 2026, he accumulated profits exceeding $107,500
- The platform’s internal monitoring systems identified the irregular trading patterns and reported them to regulators
- This marks the CFTC’s second insider trading enforcement action involving event contracts within a month
The prediction markets industry faces heightened regulatory attention following revelations that a former White House staff member exploited privileged access to presidential remarks to generate profits through wagers on the president’s specific word choices.
Gabriel Perez, who previously operated teleprompter equipment, has reached a settlement with the Commodity Futures Trading Commission totaling $172,000. The settlement requires him to surrender $107,539 in ill-gotten gains and remit a $65,000 monetary penalty. Additionally, he faces a three-year prohibition from conducting trades on any CFTC-regulated exchange.
In December 2025, Perez established an account with Kalshi. His position provided him advance knowledge of the president’s scripted statements approximately 60 minutes prior to public delivery.
Armed with this privileged information, he executed trades on Kalshi’s “presidential mention markets”āderivative contracts structured around whether particular words or terms appear in official addresses. Since Perez possessed foreknowledge of the speech content, his wagers carried virtually guaranteed outcomes.
His trading activity spanned from December 2025 through March 2026, during which he amassed winnings surpassing $107,500 before enforcement authorities intervened.
Platform’s Internal Monitoring Identified Suspicious Activity
The irregularities were first detected by Kalshi itself. The platform’s compliance and surveillance division identified the anomalous trading behavior and submitted a referral to the CFTC. Robert DeNault, who leads enforcement operations at Kalshi, confirmed on X that the company’s oversight mechanisms successfully identified the violations.
“It doesn’t matter who you are: violate our rules or federal law and you will face the consequences,” DeNault wrote.
Throughout the investigation, Perez provided full cooperation with federal authorities. The CFTC characterized his level of assistance as “exemplary,” resulting in approximately 40% mitigation of his financial penalty. He accepted the settlement terms without formally acknowledging the allegations.
Growing Concerns Over Prediction Platform Manipulation
This enforcement action represents part of an emerging pattern. On July 31, former representative George Santos reached an agreement with the CFTC requiring payment of roughly $35,000 related to Kalshi positions connected to the State of the Union address. Investigators determined he had made misleading public statements about his attendance while maintaining active positions in related markets.
In May, federal authorities indicted a Google software engineer for allegedly leveraging proprietary search analytics to generate approximately $1.2 million through Polymarket trades. The CFTC simultaneously pursued civil charges in that matter.
Earlier this year, military personnel faced charges over Polymarket positions linked to a Venezuelan military engagement. A content producer employed by MrBeast was terminated following a Kalshi insider trading investigation.
In response to these incidents, both Kalshi and Polymarket implemented enhanced compliance protocols in March 2026, deploying advanced monitoring systems and revising their code of conduct provisions.
The CFTC continues developing comprehensive regulatory guidance for prediction market platforms under Chair Michael Selig’s leadership. Meanwhile, a federal appellate panel recently ruled unfavorably for Kalshi in its legal challenge against Nevada gaming authorities, determining the company failed to demonstrate federal law supremacy over state gambling regulations.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
