Overview
- The White House confirmed on Tuesday that Gabriel Perez no longer works in the federal government after he was placed on unpaid leave over reports he used advance access to President Trump’s remarks to win more than $100,000 on Kalshi event contracts.
- Kalshi’s surveillance team identified unusually timed wagers on specific words in major speeches, froze most of the reported profits, opened an internal review and referred the trades to the Commodity Futures Trading Commission.
- Manhattan federal prosecutors reportedly declined to open a criminal case, while regulators continue a civil review that, according to reporting, could lead to a settlement requiring Perez to return winnings and be barred from similar trading.
- The White House has circulated warnings to staff about using nonpublic government information for private gain and exchanges including Kalshi and Polymarket have tightened disclosure and screening rules.
- The episode adds to several 2026 cases that have tested how insider-trading rules apply to prediction markets and has pushed lawmakers to consider restrictions and clearer enforcement for officials who use those platforms.