A former
The investigation centered on activity occurring between December 2025 and February 2026, during which Perez allegedly used his proximity to sensitive information to bet on specific phrases and words that would appear in President Donald Trump’s public addresses. According to the CFTC, Perez misappropriated this non-public information in a clear breach of his professional duties of trust and confidence.
Regulatory Penalties and Employment Status
Under the terms of the agreement, Perez is required to surrender $107,500 in profits gained from the trades. Additionally, he must pay a $65,000 civil penalty. The commission noted that the fine was reduced from a higher potential amount due to what it described as the former staffer’s exemplary cooperation throughout the investigation.
The case first drew public attention in July, when reports surfaced regarding the alleged misuse of his position. At that time, the White House confirmed that Perez had been placed on unpaid leave. While a spokesperson later clarified that he was no longer employed by the administration, the White House did not specify whether he had resigned or been terminated. Following the initial reports, White House press secretary Karoline Leavitt publicly addressed the matter, characterizing the situation as both unfortunate and a disgrace.
The Role of Prediction Markets
The bets in question were placed on Kalshi, a platform that allows users to trade contracts based on the outcomes of specific events. By leveraging his access to presidential speech drafts before they were delivered to the public, Perez was able to gain an illicit advantage in the market. The CFTC’s action underscores the regulatory focus on maintaining the integrity of prediction markets as they become increasingly utilized for political and economic forecasting.
The White House has not provided further comment regarding the final settlement reached between Perez and the federal commission. As of the latest announcement, the three-year trading ban remains in effect, and the financial penalties have been finalized, concluding the regulatory oversight phase of the incident.
