Former White House Staffer Fined Over $172,500 for Insider Trading on Kalshi
A former White House employee used Trump's speech texts to earn more than $107,500 on prediction markets.
1Case Summary
The U.S. Commodity Futures Trading Commission (CFTC) imposed a $172,539 penalty on Gabriel Peretz, a former White House staffer. Between December 2025 and February 2026, Peretz accessed unpublished speech texts of then-President Donald Trump and used this information to trade on Kalshi, a prediction market platform. Through these trades, he gained over $107,500 in illegal profits.
2Method Used
As a teleprompter operator at the White House, Peretz had access to presidential speech texts before they were delivered. He used this privileged information to trade 'presidential mention market contracts' on Kalshi - agreements that pay out based on whether specific words or phrases appear in presidential speeches. These specialized prediction market products became his tool for exploitation.
3Penalties Imposed
The CFTC ordered Peretz to disgorge $107,539.02 of ill-gotten gains, pay a $65,000 civil monetary penalty, and refrain from trading for three years. The commission noted Peretz's 'exemplary cooperation' during the investigation led to penalty reduction. KalshiEX's assistance in the case was also acknowledged by regulators.
4Market Integrity Concerns
This incident reignited concerns about insider information risks in prediction markets. Kalshi's Chief Risk Officer Robert Deno emphasized that rule violations carry consequences regardless of who commits them. The platform had already implemented stricter measures in March 2026, including completely blocking politicians and athletes from certain markets.
5Industry Reactions
CME Group CEO Terry Duffy used the Peretz case during an August 2026 CFTC advisory committee meeting to argue for tighter prediction market regulations. Citing both this incident and contracts about Venezuelan President Nicolás Maduro's potential arrest, Duffy highlighted manipulation risks. CFTC Chairman Mike Selig noted these controversial contracts traded on offshore platforms.
6Platform's Countermeasures
Kalshi announced enhanced safeguards against insider trading, including employment verification systems, risk assessment protocols, and streamlined whistleblower reporting. In April 2026, the platform had already banned and fined three U.S. politicians for trading contracts related to their own elections.
7Similar Cases
The Peretz case wasn't isolated. According to NPR reports, former Congressman George Santos allegedly made tens of thousands trading Kalshi contracts predicting his attendance at a Trump congressional address. Such incidents prompted Kalshi to strengthen oversight of political markets.
8Industry Implications
This case underscores the need for robust regulation in fintech prediction markets, especially for politically-linked contracts vulnerable to insider information. The CFTC's decisive action sets an important precedent for maintaining transparency and trust in evolving financial platforms where sensitive information can translate to unfair advantage.