CFTC Fines Ex-White House Teleprompter Operator $172,000 for Kalshi Insider Trades

Kalshi is a prediction-market exchange overseen by the U.S. Commodity Futures Trading Commission, where users trade event contracts tied to outcomes ranging from politics to sports. The case involving former U.S. Representative George Santos tests regulators’ ability to police manipulation in the fast-growing sector, after he publicly discussed plans to attend the State of the Union while trading contracts linked to his own appearance.

The CFTC announced the settlement on July 31, 2026, finding that Santos made material misrepresentations and omissions on social media while buying and selling contracts tied to President Donald Trump’s February 24 State of the Union address. Those posts moved prices in his favor and generated $17,569.98 in profits. Santos agreed to pay a $17,500 civil penalty, surrender the profits — bringing the total above $35,000 — and accept a three-year ban from prediction-market trading.

Kalshi’s “Mentions” contracts let traders wager on whether specific words, phrases or topics will appear in public speeches. Gabriel Perez had operated Donald Trump’s teleprompter since 2016, giving him potential advance access to prepared remarks. Allegations that he used job-derived, nonpublic information to trade put a fresh spotlight on insider-risk controls at prediction markets and oversight by the Commodity Futures Trading Commission, which regulates Kalshi.

ABC News reported on July 16 that Perez made more than $100,000 betting on what Trump would say in major addresses, including this year’s State of the Union. The White House placed him on unpaid leave that day. Kalshi said its surveillance team flagged, investigated and referred the trades to the CFTC. On July 28, a White House official said Perez no longer worked in the federal government but did not say whether he resigned or was fired.

Kalshi is a Commodity Futures Trading Commission-regulated designated contract market where users trade on the outcomes of elections, entertainment events and other events. As the market expands rapidly, traders with nonpublic information could distort prices and undermine trust. The platform therefore established an independent surveillance and audit committee in February 2026 and publicly disclosed enforcement actions for the first time, setting an insider-trading enforcement precedent for prediction markets.

On February 25, 2026, Kalshi found that MrBeast editor Artem Kaptur had used nonpublic information to trade and earned more than $5,000. It fined him $20,397.58 and banned him for two years. On April 22, it also penalized Mark Moran and two other candidates who bet on their own election prospects, banning each for five years and imposing fines of up to about $6,200. Starting June 10, users trading in high-risk markets must disclose their employers.

Kalshi is an event-contract exchange regulated by the U.S. Commodity Futures Trading Commission (CFTC), allowing users to wager real money on outcomes in politics, online video and other areas. Trading by people with nonpublic information can distort prices and undermine market credibility. The controversy has also prompted the U.S. Congress to advance the Financial Prediction Markets Public Integrity Act of 2026, which would restrict officials from wagering using information obtained through their positions.

On February 25, 2026, Kalshi said it had opened about 200 investigations over the previous year. MrBeast editor Artem Kaptur used nonpublic information to place bets and was suspended for two years, fined $15,000 and ordered to disgorge $5,397.58. California gubernatorial candidate Kyle Langford wagered $200 on himself and was suspended for five years, fined $2,000 and ordered to disgorge $246.36. Both cases were reported to the CFTC.