The Commodity Futures Trading Commission (CFTC) announced Friday that Gabriel Perez, a former White House teleprompter operator, must pay a total of $172,000 for engaging in insider trading on prediction markets. The penalty includes disgorgement of $107,539.02 in illicit profits plus a $65,000 civil fine.
Perez, who had worked for President Trump since 2016, was suspended from his White House role last month after Kalshi, a prediction market platform, flagged suspicious trades to federal regulators. A White House official confirmed at the end of July that Perez was no longer employed by the federal government.
According to the CFTC, Perez exploited his access to the content of Trump's speeches to place bets in presidential mention markets, which allow users to wager on whether a specific word or phrase—such as country names, political topics, or campaign slogans—will be uttered by a public figure. Between December 2025 and February 2026, Perez generated over $100,000 from these trades.
White House press secretary Karoline Leavitt said last month that the president was informed of the situation and "believes it is deeply unfortunate and, frankly, a disgrace." The CFTC also imposed a three-year ban on Perez from trading on prediction markets.
Robert DeNault, head of enforcement and legal counsel at Kalshi, responded to the penalties in a statement Friday evening: "It doesn't matter who you are: violate our rules or federal law and you will face the consequences."
The case highlights growing concerns about insider trading in prediction markets, which have drawn increased scrutiny over the past year. In April, a U.S. Army soldier was charged with using knowledge of a top-secret operation to capture Venezuelan President Nicolás Maduro to place bets on Polymarket, allegedly profiting by over $400,000.
Both Kalshi and Polymarket have introduced new safeguards this year to curb insider trading. Kalshi now restricts politicians, athletes, and other groups from betting in certain markets, while Polymarket updated its rules to explicitly ban trades based on confidential information.
The CFTC's action sends a clear signal that federal regulators are actively policing these platforms, even as they remain a gray area in financial oversight. The case also underscores the unique risks posed by staff with direct access to presidential communications.
