CFTC Penalizes Insider Trading in Prediction Markets
- Gabriel Perez, a former White House teleprompter operator, was ordered to disgorge $107,539.02 for insider trading on Kalshi.
- He also faces a $65,000 civil penalty and a three-year ban from trading activities.
- Perez used confidential information about President Trump’s speeches to trade “presidential mention market contracts” from December 2025 to February 2026.
- The CFTC emphasized the need for stricter regulations to prevent insider manipulation in prediction markets.
- Kalshi’s enforcement head, Robert DeNault, stated that the company’s surveillance team flagged the suspicious trades promptly.
The case highlights significant vulnerabilities within prediction markets and raises concerns over insider trading practices in cryptocurrency-related sectors. The CFTC’s actions reflect its commitment to maintaining market integrity and enforcing regulations against misuse of non-public information.
As part of the ruling, Perez must return his illicit earnings of $107,539.02 and pay an additional civil penalty of $65,000 due to his cooperation during the investigation. (Source)
