Gabriel Perez, a White House teleprompter operator since 2016, is under investigation by the Commodity Futures Trading Commission (CFTC) for allegedly engaging in insider trading on prediction markets. Perez is accused of using his advance knowledge of President Trump's speeches to bet on specific words and phrases mentioned in so-called "mention markets" on the platform Kalshi. Sources familiar with the matter indicate Perez profited between $90,000 and over $100,000 from these trades, though most of these profits have been frozen by Kalshi.
The alleged activities spanned over a three-month period, involving more than a dozen Trump speeches, including the State of the Union, a World Economic Forum address, and a Medal of Honor ceremony. Investigators also found instances where Perez would cancel bets mid-speech if Trump deviated from the prepared remarks. Kalshi's internal surveillance system flagged the unusual trading patterns, leading the company to freeze Perez's account and refer the case to the CFTC. Perez is reportedly cooperating with the CFTC and is in discussions for a potential settlement that would require him to return the profits and cease similar trading activities.
Following these revelations, White House Press Secretary Karoline Leavitt announced that President Trump personally directed Perez be placed on unpaid administrative leave, calling the situation a "disgrace." This incident follows a March 24 memo from the White House warning staff against misusing nonpublic information for financial gain on prediction markets. The Department of Justice has recently initiated its first cases of insider trading on prediction markets, including a special forces soldier and a Google employee, highlighting growing regulatory scrutiny in this burgeoning market sector.
