The U.S. derivatives regulator — the Commodity Futures Trading Commission (CFTC) — has concluded its proceedings against Gabriel Perez, who was accused of using insider information to profit on the Kalshi prediction platform. This is a landmark case that sheds light on the growing risks of insider trading in new segments of crypto and prediction markets.
According to the official order, Perez is required to return $107,539 in illegally obtained profits and pay a civil penalty of $65,000. Thus, the total financial claims amounted to $172,539. Additionally, he is banned from participating in trading on regulated venues for three years and has been ordered to fully cease violations of the law.
The essence of the CFTC's allegations is that between December 2025 and February 2026, Perez, while serving as a teleprompter operator at the White House, had access to closed texts of presidential speeches before their public delivery. Using this confidential information, he entered into contracts on Kalshi that directly depended on presidential mentions in speeches. This allowed him to anticipate market movements and generate steady but illegal profits.
This case highlights that the CFTC is actively expanding its oversight of prediction platforms, which are becoming increasingly popular among investors. Unlike classical financial markets, where insider trading has long been under strict control, here the regulator must adapt existing rules to new realities. Demand for such contracts typically surges during periods of political uncertainty, making them vulnerable to abuse.
For market participants, this precedent serves as a clear signal: even on decentralized and alternative platforms, the rules of the game remain strict. In my professional analysis, such regulatory actions are just the beginning. As institutional interest in prediction markets grows, we will see tighter requirements for transparency and the fight against insider information, which in the long term will strengthen trust in this asset class.