A senior White House technical assistant who has operated President Donald Trump’s teleprompter since 2016 allegedly used non-public information about speech content to win more than $100,000 on Kalshi’s prediction markets.
Gabriel Perez, a technical assistant to the president, is in settlement talks with the Commodity Futures Trading Commission (CFTC) after placing bets on more than a dozen Trump speeches over a three-month period. The trades occurred on Kalshi’s “Mentions” market, where users wager on whether specific words, phrases, or topics will be uttered during public addresses.
According to ABC’s report citing sources familiar with the matter, Perez leveraged his role, which gives him final review of prepared remarks and last-minute edits, to gain an edge on contracts tied to high-profile events, including February’s State of the Union address, a December primetime speech, January remarks at the World Economic Forum in Davos, and March comments during a Medal of Honor ceremony.
Kalshi Flags Suspicious Activity
Kalshi’s surveillance team detected unusual trading patterns in its Mentions contracts in March 2026 and launched an internal investigation. The platform quickly referred the activity to the CFTC and froze more than $90,000 in Perez’s account before most profits could be withdrawn.
Kalshi’s Head of Enforcement, Robert DeNault, confirmed the company’s swift action, and stated, “Our surveillance team promptly flagged and referred these trades to the CFTC, and we are cooperating and assisting regulators. If you have information by virtue of your job or your employment, something that you have a legal duty surrounding, and you have an obligation not to take that [and] misappropriate it for yourself.”
The platform, which maintains a strict policy against trading on material non-public information obtained through employment, has since enhanced its compliance measures and now requires users to disclose employment when relevant.
White House Response
White House Press Secretary Karoline Leavitt confirmed that Perez has been placed on unpaid administrative leave following discussions with President Trump, who reportedly described the situation as “a disgrace.”
“There are very strict ethical guidelines here at the White House that explicitly state not to do this,” Leavitt told reporters. “The individual that was cited in that report is complying with the CFTC.”
No other White House staffers are known to be involved. An internal memo issued in March had already warned staff against using non-public information for prediction market bets.
Implications for Prediction Markets
The CFTC identified the trades and is pursuing a civil settlement that would likely require Perez to disgorge profits and agree to trading restrictions. Federal prosecutors in Manhattan reviewed the matter but declined to pursue criminal charges.
The incident highlights growing scrutiny of prediction markets as they gain mainstream traction. Kalshi, a CFTC-regulated platform, operates alongside crypto-native markets like Polymarket, which have seen explosive growth in political and event-based contracts.
While prediction markets are often praised for their efficiency in aggregating information and providing real-time probabilities, this episode underscores the challenges platforms face in preventing insider trading, a risk that becomes more pronounced when contracts involve high-profile political figures with close aides who have advance access to information.
Kalshi has positioned itself as a compliant, regulated venue and has emphasized cooperation with regulators. The company’s rapid detection and referral of the activity is being viewed by some observers as evidence that surveillance systems are working, even as the industry matures.
President Trump has expressed mixed views on prediction markets in the past, criticizing their casino-like nature while acknowledging their presence in global markets. His media company, Trump Media and Technology Group, previously announced plans to explore its own prediction market offerings.
What’s Next
Perez has acknowledged some of the trades during interviews with CFTC investigators. Settlement discussions are ongoing, and the White House has already replaced him for upcoming events.
As prediction markets continue to expand into politics, economics, and beyond, this case serves as a clear reminder that platforms, whether traditional or crypto-based, must maintain rigorous safeguards against the misuse of privileged information. For the industry, maintaining public trust will depend on transparent enforcement and proactive compliance measures.
Also Read: Argentine Judge Orders 25 $LIBRA Wallets Frozen, Exchanges to Unmask Holders
