CryptoSlate
Gabriel Perez, a White House teleprompter operator, must surrender $107,539.02 in prediction-market profits and pay a $65,000 civil penalty after the CFTC found he traded "mention market" contracts on Kalshi between December 2025 and February 2026 using advance access to presidential speeches. The settled administrative order also includes a three-year trading ban and a cease-and-desist. The penalty was substantially reduced because of Perez's "exemplary cooperation," according to the CFTC; the order describes a civil regulatory settlement and does not report a criminal conviction.
Why it matters
The order is the most concrete insider-trading enforcement the CFTC has run in the prediction-market space. The agency treats event contracts like the presidential "mention" contracts Perez traded as swaps, which puts insider-trading statutes in scope for any market participant with material nonpublic information. Speech writers, White House staff, and any other insider with advance text now sit inside an active CFTC enforcement lane, and the precedent is set even though no criminal conviction was filed.
Market impact
Kalshi was credited with "assistance" in the CFTC release. AP reported in July that the exchange's enforcement head said the platform "promptly flagged, investigated and referred" the trades. The exchange later added risk scoring for insider-risk markets, employment verification for some participants, and expanded whistleblower tools, though those controls came after Perez's trading window and the available record does not establish whether they would have blocked his activity. Other designated contract markets now have a public benchmark for what cooperation looks like and what minimum controls are expected when insider-trading referrals land.
Frequently asked questions
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Who is Gabriel Perez and what did he do?
Gabriel Perez worked as a White House teleprompter operator. The CFTC found he traded Kalshi "mention market" contracts on whether specific words would appear in presidential speeches, using advance access to the prepared text from his job.
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How much profit did Perez make and what is the penalty?
Perez made $107,539.02 in profits, all of which he must surrender under the CFTC's order. He'll also pay a $65,000 civil penalty, accept a three-year trading ban, and cease-and-desist from further violations.
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What are "mention market" contracts?
Mention markets are event contracts that settle on whether a specific word or phrase is spoken during a designated event, such as a presidential speech. The CFTC treats them as swaps, which puts insider-trading rules in scope for traders with material nonpublic information.
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Did Kalshi face any charges in the case?
No. The CFTC credited Kalshi with "assistance" in its release. AP reported in July that the exchange's enforcement head said the platform's surveillance team "promptly flagged, investigated and referred" the trades. The order does not charge Kalshi or find a surveillance failure.
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What new controls has Kalshi added since the case?
In June Kalshi announced risk scoring for markets with heightened insider or manipulation risk, employment verification for some participants, and expanded whistleblower tools. Those controls came after Perez's December-to-February trading window, and the available record does not establish whether they would have…
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