CFTC Fines Former White House Employee $172,000 for Insider Trading on Prediction Markets
The Commodity Futures Trading Commission (CFTC) has issued a $172,000 penalty against Gabriel Perez, a former teleprompter operator for the White House, for misusing confidential information to profit from prediction market contracts.
According to the CFTC's enforcement order, Perez accessed presidential speeches prior to their delivery and used this insider knowledge to trade on contracts that predicted the words or phrases the President would use. This misconduct occurred between December 2025 and February 2026, during which Perez generated over $107,500 in unlawful profits.
The settlement requires Perez to disgorge $107,539.02 and pay an additional civil monetary penalty of $65,000, which was reduced due to his cooperation with the investigation. Furthermore, Perez is banned from trading for three years and must cease any further violations.
The CFTC acknowledged the assistance of KalshiEX in this case, highlighting the ongoing efforts to maintain integrity in prediction markets.
FAQ
What was the penalty issued by the CFTC against Gabriel Perez?
The CFTC issued a $172,000 penalty against Gabriel Perez, which includes disgorging $107,539.02 in unlawful profits and an additional civil monetary penalty of $65,000.
What misconduct did Gabriel Perez engage in?
Gabriel Perez misused confidential information by accessing presidential speeches before they were delivered and traded on prediction market contracts based on that insider knowledge.
What was the time frame during which Perez's misconduct occurred?
The misconduct occurred between December 2025 and February 2026.
How much profit did Perez generate from his insider trading activities?
Gabriel Perez generated over $107,500 in unlawful profits from his insider trading activities.
What are the consequences for Gabriel Perez following the CFTC's ruling?
Gabriel Perez is banned from trading for three years and must cease any further violations.
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