CFTC fines former White House aide $172,000 for insider trading on prediction markets

The U.S. Commodity Futures Trading Commission has ordered a former White House teleprompter operator to pay more than $172,000 for insider trading on a prediction market platform, marking a significant enforcement action in the emerging field of event-based contracts. Gabriel Perez must surrender $107,539.02 in illicit profits and pay a $65,000 civil penalty under a settlement announced by the agency on August 29, 2026. The CFTC found that Perez, who had operated the teleprompter for President Donald Trump since 2016, exploited his position to gain advance access to presidential speeches. Between December 2025 and February 2026, he used this material nonpublic information to trade on Kalshi's "mention market" contracts. These event contracts paid out based on whether specific words or phrases appeared in the president's addresses. By knowing the prepared text roughly an hour before delivery, Perez held a decisive information advantage over other market participants. According to the agency's order, Perez misappropriated this information in breach of his duty of trust and confidence, converting his knowledge into trading profits.