- A former White House official made $107,539 on insider information by betting on Kalshi.
- Forecasting platforms have already updated their rules to avoid such cases.
The U.S. Commodity Futures Trading Commission (CFTC) has ordered former White House teleprompter operator Gabriel Perez to pay more than $172,000 for illegal bets on Kalshi.
According to the regulator, from December 2025 to February 2026, Perez used information about Donald Trump's upcoming speeches to bet on prediction markets. He had access to the information before Trump published it. This earned him more than $107,500, which he must now repay. He was also ordered to pay a fine of $65,000. He is also prohibited from trading on similar platforms for three years.
Perez accepted the Commission's decision, although he still didn't consider it justified. However, the civil penalty was reduced by approximately 40% after the former White House official voluntarily gave an interview and admitted responsibility. The agency called this "exemplary cooperation."
On July 31, former Congressman George Santos also agreed to pay the Commission about $35,000 for Kalshi's dealings under a contract that specified who would attend the President's State of the Union address in February 2026.
To prevent the use of insider information, Kalshi and Polymarket have already updated their rules and added new user verification tools.
The information on this site is for informational and educational purposes only and does not constitute investment advice or financial recommendations. Cryptocurrencies and digital assets carry a high level of risk, including possible loss of capital. The editors are not responsible for decisions made based on the published materials. It is recommended to conduct your own research (DYOR) before making investment decisions. Read the editorial policy at https://happycoin.news/about/
