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Kalshi Bets Probe
Federal regulators are investigating White House teleprompter operator Gabriel Perez over allegations that he used inside knowledge of President Donald Trump’s speeches to place bets on the prediction market Kalshi, where the trades were made on the platform’s “Mentions” market.
“Kalshi alerted its regulator, the Commodity Futures Trading Commission (CFTC), to the suspicious activity”
ABC News reported that Perez, a technical assistant to the president who has been operating Trump’s teleprompter since 2016, is in talks with federal regulators to settle allegations he used his inside knowledge to win more than $100,000, and the White House said he has been placed on unpaid leave.
Kalshi told ABC News that its surveillance team “promptly flagged and referred these trades to the CFTC,” after the company alerted the Commodity Futures Trading Commission to suspicious activity.
The BBC reported that Kalshi froze Perez’s account before any profits could be withdrawn, and that the exchange froze more than $90,000 before it could be withdrawn, as the investigation centered on whether Trump would use specific words or phrases during major public addresses.
White House Reaction
White House press secretary Karoline Leavitt said Thursday that Trump was aware of the situation and described it as “deeply unfortunate and, frankly, a disgrace,” while also saying Perez would no longer work at the White House.
Leavitt told reporters that the individual cited in the report was complying with the CFTC and had been placed on unpaid administrative leave, and she said “there will be a teleprompter operator tonight, of course, but it will not be the one.”
Kalshi’s head of enforcement Robert DeNault said the company’s surveillance team “promptly flagged and referred these trades to the CFTC,” and that Kalshi was “cooperating and assisting regulators.”
ABC News reported that federal prosecutors in Manhattan declined to open a criminal investigation, while the CFTC declined to comment when contacted by ABC News.
Settlement Terms and Fallout
Multiple outlets said regulators are considering settlement terms that could require Perez to give back his profits and refrain from making similar trades, with ABC News describing ongoing discussions with the CFTC.
“require Perez to give back his profits and refrain from making similar trades”
Forbes reported that Perez is reportedly in talks to settle allegations he has earned more than $100,000 trading on Trump’s speeches, and it said the White House press secretary Karoline Leavitt told reporters that Trump believes the behavior is “deeply unfortunate” and “frankly a disgrace.”
NPR reported that Kalshi traders had already wagered more than $800,000 on whether Trump will say words like “Hormuz,” or “rigged election,” or “fake news,” as the “mention markets” concept ties bets to whether specific words and phrases will be used during public events.
NPR also reported that a White House memo in March warned staff against using nonpublic government information to place bets on Kalshi and Polymarket, stating that it is a criminal offense for anyone inside the White House to “buy” or “sell” on the sites, and that misusing government information “is a very serious offence and will not be tolerated.”
