Following the publication of the report, the LinkedIn profile associated with Perez was no longer publicly accessible.
The allegations have raised concerns because prediction markets rely on all participants having equal access to public information. If an individual holds material nonpublic information that could affect an event's outcome, regulators may review whether that person secured an improper trading advantage.
The exchange emphasized that it identified the suspicious activity through internal monitoring systems rather than responding to an external complaint. A company statement indicated that evidence was shared with federal regulators as part of a formal referral.
Officials confirmed cooperation with the Commodity Futures Trading Commission but declined to disclose further details of the investigation.
The scrutiny arrives months after the platform expanded its anti-insider-trading framework. In March 2026, the company deployed automated safeguards to block politicians, candidates, athletes, referees, and other insiders from trading in markets they could influence.
Rather than relying solely on post-trade investigations, the new technology is built to prevent restricted participants from executing orders. The exchange also partnered with an integrity-monitoring firm to screen individuals linked to professional and collegiate sports.
Oversight of political markets was extended to declared candidates. The company stated these steps reflected heightened regulatory focus, federal guidance, and legislative proposals addressing insider trading risks.
A whistleblower tool was also launched, enabling users to report suspicious activity directly from market pages. The exchange described market integrity as a foundational element of its business model.
The platform has highlighted these measures as prediction markets expand into politics and other high-profile events. Earlier this year, disciplinary actions were announced against three political candidates.
Each case cited a rule prohibiting individuals who can influence an event's outcome from trading related contracts. Penalties included five-year suspensions, financial sanctions, and disgorgement of profits in one instance.
The exchange said the actions confirmed its surveillance systems were effective and supported the case for broader automated controls that prevent questionable trades before execution.
