Trump Teleprompter Operator Investigated After Earning More Than $100,000 on Kalshi
A White House technical staffer who has operated President Donald Trump’s teleprompter since 2016 is reportedly negotiating a settlement with a federal regulator after allegedly earning more than $100,000 by placing bets on the prediction-market platform Kalshi.
According to an ABC News report published on Thursday, citing sources familiar with the matter, the staffer allegedly wagered on the content of speeches that he had personally loaded into the teleprompter system.
Kalshi, a prediction market regulated by the U.S. Commodity Futures Trading Commission, or CFTC, allows users to trade contracts based on real-world outcomes. The platform is at the centre of the investigation.
Although Kalshi is privately held, the case could have direct implications for publicly traded financial-technology and online-gambling companies that are expanding into prediction markets. Regulatory scrutiny of potential insider trading on these platforms has intensified as the sector continues to grow.
Staffer Allegedly Bet on Trump’s Speeches More Than 100 Times
Gabriel Perez, the staffer identified in the report, allegedly placed bets on Trump’s speeches more than 100 times over a three-month period.
ABC News cited several specific events, including Trump’s State of the Union address in February, a prime-time speech in December, a January address at the World Economic Forum in Davos, and a Medal of Honor ceremony in March.
NBC News separately reported that Perez earned more than $90,000 through Kalshi’s “Mentions” markets, where users bet on whether certain words, phrases, or topics will be mentioned during public speeches.
Suspicious Trading Activity Allegedly Exposed the Scheme
Investigators reportedly identified several trading patterns that helped expose the alleged scheme.
According to ABC News sources, Perez was repeatedly observed exiting positions while speeches were still under way after Trump deviated from the prepared script and skipped words that Perez had bet would be mentioned.
Because Perez often had access to last-minute edits made by Trump himself, investigators concluded that he possessed an informational advantage that ordinary market participants could not replicate.
CFTC Pursues Civil Settlement After Prosecutors Decline Criminal Charges
The CFTC referred the matter to federal prosecutors in Manhattan, but the U.S. Attorney’s Office reportedly declined to pursue criminal charges.
The regulator is now seeking a civil settlement that would require Perez to return his profits and refrain from engaging in similar betting activity in the future, according to ABC News.
The exact terms of the proposed settlement, including the amount Perez may be required to repay and the details of any formal consent order, have not yet been made public.
Kalshi Says Its Internal Surveillance System Flagged the Activity
Kalshi said its own internal monitoring systems identified the suspicious activity before regulators began asking questions.
“Our surveillance team flagged and quickly referred these trades to the CFTC, and we are cooperating with and assisting the regulator,” Kalshi lead counsel Bobby DeNault said, according to ABC News.
The platform has since updated its policies to require users to disclose their employers when registering.
In May, DeNault described the underlying legal principle as follows: if an individual obtains information through their position or employment and has a legal duty regarding that information, they cannot misappropriate it for personal gain.
White House Says Perez Is Cooperating Fully
The White House did not publicly distance itself from Perez.
“The White House maintains strict ethical standards that we expect every employee and official to follow,” spokesperson Davis Ingle said. “The employee involved is fully cooperating with the CFTC.”
It remains unclear whether Perez is still employed at the White House or whether any internal disciplinary action has been taken beyond the civil settlement currently under consideration.
Case Follows Similar Allegations Involving Polymarket
The case is not an isolated incident.
The New Republic reported on a similar case in April involving a special-operations soldier connected to the capture of Venezuelan President Nicolás Maduro. The soldier was reportedly charged with using classified intelligence to win $400,000 on the prediction-market platform Polymarket.
Together, the two cases appear to be shaping a clearer regulatory position. The CFTC increasingly views the use of material, non-public government information to trade on prediction markets as a form of insider trading, even when the underlying products are event contracts rather than traditional securities.
White House Previously Warned Staff About Prediction-Market Trading
The White House itself has demonstrated awareness of the issue.
In late March, it issued an internal memorandum warning staff members not to use non-public information when placing bets on prediction markets.
The directive followed earlier reports that administration personnel may have taken advantage of privileged access to government information.
Potential Implications for Kalshi and the Prediction-Market Industry
For Kalshi and the broader prediction-market industry, the outcome of the Perez settlement will be closely watched.
A formal CFTC consent order could establish the first major enforcement framework for insider trading on event-contract platforms.
The case could also prompt stricter Know Your Customer, or KYC, requirements across the industry, including broader employer-disclosure rules and enhanced surveillance of users with access to sensitive government or corporate information.
Whether regulators move to require employer disclosure across the entire industry, or whether Congress intervenes as prediction markets grow in trading volume and public visibility, will determine how significantly compliance obligations change for platforms operating in this rapidly expanding sector.
This article was translated with the assistance of artificial intelligence. For further information, please review the Terms of Use.
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