Insider Trading in Prediction Markets: A Growing Concern

The CFTC order highlights a significant issue within the world of cryptocurrency and prediction markets. The case involves Gabriel Perez, a former White House teleprompter operator, who was ordered to disgorge $107,539.02 and pay a $65,000 civil penalty after using non-public information from President Donald Trump’s speeches to trade contracts on Kalshi.

Exploiting Confidential Information

During his tenure from December 2025 to February 2026, Perez accessed details of President Trump’s speeches before they were publicly delivered. He used this privileged information to engage in trading “presidential mention market contracts.” These contracts speculate on whether certain words or phrases will be mentioned during presidential addresses.
The CFTC said the trades produced $107,539.02 in gains, which Perez was ordered to disgorge. His actions not only breached trust but also highlighted vulnerabilities in prediction markets susceptible to insider manipulation.

CFTC’s Firm Stance on Regulation

The CFTC’s decision serves as a stern reminder that no individual is above the rules governing financial markets. Kalshi Head of Enforcement Robert DeNault said the company’s surveillance team promptly flagged the trades, investigated them and referred them to the CFTC. As part of the penalty, Perez must return $107,539.02 in illicit earnings and pay a civil penalty of $65,000. Additionally, he faces a three-year ban from trading activities.
The CFTC said the civil penalty reflected Perez’s cooperation during the investigation.

Primary sources: CFTC order and Kalshi market-integrity update.