Ex-White House Aide Fined for Insider Trading on Prediction Markets
Gabriel Perez, a former White House teleprompter operator, settled with the CFTC after using advance access to President Trump's speeches to trade on prediction market contracts, generating profits exceeding $107,500. The order imposed a $65,000 penalty and three-year trading ban, with KalshiEX credited for cooperation.
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The Trading Activity
Gabriel Perez, a former White House teleprompter operator, used his access to President Trump's speeches before public delivery to trade on "presidential mention market" contracts on prediction exchanges, according to a settled CFTC enforcement order. Perez profited more than $107,500 from the trades by betting on whether specific individuals or entities would be mentioned in upcoming addresses, leveraging non-public information available to him through his role.
CFTC Settlement and Penalty
The CFTC issued a settled order against Perez that includes a $65,000 penalty and a three-year ban from trading on designated contract markets. The agency credited KalshiEX, one of the prediction market platforms, for its assistance in the investigation and enforcement action. The settlement reflects the regulator's focus on enforcing insider trading prohibitions in the emerging prediction market sector, where contracts on political and economic events have grown in trading volume and retail participation.
Regulatory Signal
The case underscores the CFTC's view that advance knowledge of government statements constitutes material non-public information subject to existing anti-fraud and insider trading rules, even when traded on decentralized or less-regulated platforms. It also demonstrates that law enforcement agencies are monitoring prediction market activity for violations of securities and derivatives law.
Why It Matters
For Traders
Prediction market participants should assume trading activity on politically sensitive contracts may face regulatory scrutiny, reducing the information-asymmetry edge available to insiders.
For Investors
The CFTC enforcement demonstrates U.S. regulators view prediction markets as falling under existing insider trading law, shaping how platforms structure compliance and which user behaviors they must monitor.
For Builders
Prediction market platforms must implement transaction monitoring and user verification to detect potential insider trading; KalshiEX's cooperation shows platforms that assist enforcement may receive favorable treatment.
This article is for information only and is not financial advice. Read the full disclaimer.
