CFTC fines ex-White House staffer $172K for Kalshi trades
A former White House teleprompter operator settled with the CFTC over insider trading on Kalshi event contracts.
The U.S. Commodity Futures Trading Commission (CFTC) announced a settlement requiring a former White House teleprompter operator to pay $172,000 over trades made on Kalshi, a prediction market platform. The agency said the individual traded on "mention markets" while in possession of non-public information.
According to the CFTC, this is the agency's second insider trading case against a federal employee trading event contracts, and the second related settlement within the past four weeks. The enforcement action targets misuse of confidential government information for personal gain.
Growing scrutiny of prediction markets
The settlement signals increased regulatory attention on event-based trading platforms like Kalshi, which offer contracts tied to political mentions and other real-world outcomes. Federal employees who access sensitive information are subject to trading restrictions, and the CFTC has warned that violations will be pursued.
Neither the individual nor Kalshi has publicly commented on the settlement beyond the CFTC's announcement. This case follows a similar enforcement action last month, indicating a broader push to police insider trading in the rapidly growing event contracts market.