A White House teleprompter operator has been placed on unpaid administrative leave after being accused of making more than $100,000 by betting on the content of President Donald Trump's speeches. Gabriel Perez, who operated Trump's teleprompter for over a decade, is in settlement talks with the Commodity Futures Trading Commission (CFTC) over allegations of insider trading on the prediction market platform Kalshi.
Immediate Action & Core Facts
Perez is accused of using his inside knowledge to place bets on specific words or phrases that would appear in Trump's speeches, including the State of the Union address. Kalshi, the prediction market platform, alerted the CFTC to suspicious activity on its "Mentions" market, where users bet on whether certain words or phrases will be used in public speeches. The CFTC is investigating the allegations, and Kalshi froze Perez's account before he could withdraw any profits.
Deeper Dive & Context
Background on the Investigation
Kalshi's surveillance team flagged unusual betting patterns and identified Perez as a federal employee operating White House teleprompters. The platform froze more than $90,000 in potential profits before they could be withdrawn. Perez has been "fully cooperative" with the CFTC, according to sources familiar with the matter.
White House Response
White House Press Secretary Karoline Leavitt stated that President Trump was aware of the allegations and found the situation "deeply unfortunate and frankly a disgrace." She emphasized that the White House has strict ethical guidelines that prohibit such actions. Perez has been placed on unpaid leave and will no longer work at the White House.
Legal and Regulatory Context
The CFTC regulates prediction markets and has been in settlement talks with Perez. The agency declined to confirm or deny an investigation when contacted by multiple news outlets. Federal prosecutors in Manhattan reportedly declined to open a criminal case.
Impact on Prediction Markets
Kalshi has introduced new security measures to combat insider trading following the incident. The platform's head of enforcement, Robert DeNault, stated that the company promptly referred the trades to the CFTC and has been assisting regulators with the investigation.
Broader Implications
This case marks the first time a White House employee has been investigated for allegedly abusing access to prediction market profits. The incident raises questions about the ethical guidelines for White House staff and the oversight of prediction markets.
Multiple Perspectives
While the White House and Kalshi have provided detailed accounts of the investigation, the CFTC has remained tight-lipped, declining to confirm or deny the probe. The lack of criminal charges suggests the case may be resolved through a settlement rather than a court proceeding.