CFTC Orders $172,000 Payment in Event-Contract Insider Trading Case

The Commodity Futures Trading Commission issued and settled an order against Gabriel Perez over trading in presidential mention market event contracts, marking another regulatory data point for traders watching the rapid growth of prediction-market products.

According to the CFTC, Perez misappropriated material, nonpublic information obtained through federal government employment and used it to trade event contracts for personal benefit. The agency said the contracts reflected words or phrases the President might use during speeches. Perez, who worked as a White House teleprompter operator, allegedly had access to speech text before delivery and traded on that information between December 2025 and February 2026.

The order requires Perez to disgorge $107,539.02 in profits and pay a $65,000 civil monetary penalty. The CFTC said the penalty reflected a discount under its cooperation advisory because of Perez’s cooperation. Perez also agreed to cease and desist from further violations, and the order imposes a three-year trading ban.

The release notes that KalshiEX assisted the CFTC in the matter.

Why it matters

Prediction markets are becoming a more visible part of the retail and professional trading landscape. This order shows the CFTC treating event-contract information misuse as a market-integrity issue, not just a novelty-product concern.

For active traders, the case is also a reminder that information advantages tied to employment duties can create enforcement risk even when the product is an event contract rather than a stock, option, or futures contract.

What to watch next

Watch for more CFTC enforcement and exchange surveillance guidance around political, economic, and company-linked event contracts, especially where market participants may have privileged access to the underlying event information.