Federal regulators are investigating Gabriel Perez, a longtime teleprompter operator for President Donald Trump, over allegations he used insider knowledge to profit from bets on the prediction market platform Kalshi. The Commodity Futures Trading Commission (CFTC) is in settlement talks with Perez, who is accused of making over $100,000 by betting on whether specific words or phrases would appear in Trump’s speeches.
Kalshi’s Surveillance Flagged Suspicious Activity
Kalshi’s surveillance team detected unusual betting patterns on its "mention markets," where users wager on whether certain phrases will be uttered during public speeches. The platform flagged Perez’s activity and referred the case to the CFTC. Robert DeNault, Kalshi’s head of enforcement, confirmed the company’s cooperation with regulators.
White House Responds to Allegations
A White House spokesperson stated that the administration has strict ethics guidelines and that the staffer in question is fully cooperating with the CFTC. The investigation spans multiple speeches, including the State of the Union address and remarks at the World Economic Forum in Davos, Switzerland.
Broader Implications for Prediction Markets
This case marks the first known instance of a White House official being investigated for insider trading on prediction markets. The incident has raised concerns about the integrity of prediction platforms, which have seen rapid growth in recent months. Kalshi has since introduced new security measures to combat insider trading.
CFTC Declines Comment
The CFTC has not publicly commented on the investigation, but sources familiar with the matter confirm ongoing negotiations with Perez. The case highlights the potential risks of insider information in emerging financial markets.