Profiting from the Teleprompter
Gabriel Perez, a long-term White House teleprompter operator, allegedly leveraged insider knowledge of Donald Trump’s speeches to net more than 100.000 Dollar on the prediction market Kalshi. The Commodity Futures Trading Commission (CFTC) has launched an investigation into the trades, which involved betting on specific words and topics included in the president’s public addresses, according to reports from ABC News and Reuters.
A High-Stakes Bet on Scripted Remarks
Perez, a veteran of Trump’s teleprompter operations dating back to the 2016 campaign, held a role that provided early access to prepared remarks. Investigators found he placed wagers on over a dozen speeches during a three-month window, including the State of the Union address in February and remarks delivered at the World Economic Forum in Davos.
The bets were placed on Kalshi, a platform specializing in “event contracts” centered on whether public figures will utter specific phrases. Because Trump frequently deviates from his prepared scripts, the strategy carried significant financial risk. According to ABC News, investigators identified instances where Perez attempted to exit his positions mid-speech after the president skipped planned passages.
Surveillance and Regulatory Scrutiny
Kalshi’s internal surveillance systems eventually caught the suspicious activity. Robert DeNault, the platform’s head of investigations, confirmed to Reuters that the company flagged the trades and forwarded evidence to the CFTC. The firm subsequently suspended Perez’s account, blocking the withdrawal of gains. ABC News reports that his total accumulated profit across the bets exceeded 100.000 Dollar.
While the CFTC has not formally confirmed an ongoing investigation, reports indicate the agency is in discussions with Perez regarding a potential settlement. Such an agreement would likely force him to forfeit his winnings and agree to refrain from future trades on the platform. Federal prosecutors in Manhattan were notified of the situation but did not initiate criminal proceedings.
Termination and Ethical Breaches
The White House confirmed that Perez was placed on unpaid leave before his employment was terminated. Spokesperson Karoline Leavitt stated that President Trump was briefed on the matter and characterized the actions as a “disgrace.”
Government employees are bound by strict ethical guidelines regarding the use of non-public information. The administration reportedly issued internal warnings as early as March, explicitly advising staff against using confidential information to participate in prediction markets. Kalshi also maintains policies prohibiting users from leveraging professional access for financial gain and now requires users to disclose their employment status for sensitive contracts.
The Shadow of Prediction Markets
This incident follows broader concerns regarding market volatility and potential insider trading surrounding Trump’s policy announcements. During periods of heightened tension between the U.S. and Iran, significant trading volume was observed on prediction platforms. Reports from The Wall Street Journal and The Guardian highlighted that hundreds of thousands of dollars were won on specific outcomes related to military strikes and ceasefires. While these events sparked widespread speculation about the use of confidential information, no definitive evidence linked specific trades to government insiders at that time.