The Commodity Futures Trading Commission (CFTC) shared a report of an “Investigation Into Alleged Telework Violations” with InGame late Monday as an example of why some staff was put on administrative leave earlier in the day. A spokesperson for the agency also wrote that “a handful of staff have been placed on leave for this and other matters that are still under review.”
There does not appear to be any indication of how long investigations could take, how many staff members were put on leave, or how unexpectedly putting “certain staff” on leave will affect how the agency operates. Nor is there any clarity at this time as to the potential breadth of “other matters.”
The CFTC has been in the news and of interest in the gambling world since last fall when prediction-market platform Kalshi won a key court case allowing it proceed with offering contracts on the 2024 presidential election as well as results of other races for elected offices. Since the start of 2025, the platform has been making noise in the sports betting space, offering an increasing number of sports-related event contracts going beyond championships and into single-game results. Kalshi filed self-certifications with the CFTC in January to offer an expanded number of sports-related event contracts.
The CFTC appealed the case centering on election markets to the U.S District Court for the District of Columbia, but on Monday dropped that appeal. The agency also canceled a policy roundtable discussion with gambling stakeholders scheduled for last week.
Sports betting stakeholders and Tribal groups have been critical of prediction markets being allowed to offer sports event contracts, saying the CFTC-certified platforms aren’t held to the same standards as legal sports betting companies, in terms of responsible gambling, KYC, and AML protocol.
The NBA and Major League Baseball are among those who questioned the agency, calling it unprepared to regulate event contracts on sporting events. In addition, the legal age for wagering in most states is 21, but the legal age for prediction markets is 18.
Chicago risk analyst allegedly worked abroad
In response to a question seeking more information about the CFTC suspensions, the agency sent InGame an Office of the Inspector General (OIG) investigation report that indicates that a Chicago-based “risk analyst” violated agency rules by “teleworking from outside the United States.”
The investigation further alleges that the worker may also have violated agency rules via “timekeeping misconduct, false or misleading statements under oath, administrative leave violations, and prohibited political activity under the Hatch Act. All allegations and specifications were substantiated by preponderant evidence,” reads the document.
The OIG offered three suggestions for corrective action, including a review of the CFTC’s CyberSecurity Operations Center, an update to “supervisory controls,” and a human resources review of the language around administrative leaves.
Agency in turmoil
Since the Trump Administration took office in January, the CFTC has been in turmoil. In February, acting Chair Caroline Pham, who was under investigation following complaints she created a hostile work environment, removed the person investigating her. She then, according to Investment News, replaced that person with the then-head of Diversity, Equity and Inclusion. But that may have been in violation of Trump’s policy, which directed government agencies to put DEI heads on administrative leave.
Trump nominated former CFTC Commissioner Brian Quintenz as the CFTC’s new chief after Rostin Benham resigned when Trump took office. Quintenz is viewed by some as a controversial pick given his history as a former Kalshi board member and head of policy at Andresseen Horowitz’s crypto fund.
