A federal regulatory inquiry is examining whether Gabriel Perez, President Donald Trump’s longtime teleprompter operator, used advance knowledge of presidential speeches to place profitable bets on Kalshi. Sources familiar with the investigation said the disputed trades generated more than $90,000 in profits before Kalshi froze the account.
Perez has worked with Trump since 2016 and reportedly had access to prepared remarks and late changes before major public appearances. That access has raised questions about whether employment-related information gave him an unfair advantage in markets allowing users to wager on words, phrases or subjects that speakers might mention.
CFTC Investigation Focuses on Speech Wagers
The Commodity Futures Trading Commission is investigating trades connected to more than a dozen Trump speeches over a period of about three months. The events reportedly included Trump’s State of the Union address, a speech at the World Economic Forum in Davos, a December prime-time address and remarks delivered during a Medal of Honor ceremony.
Investigators are examining whether Perez knew which words or topics appeared in prepared scripts before placing his wagers. Reports also indicate that he adjusted or exited some positions while speeches were underway when Trump departed from the prepared text.
The investigation remains a regulatory matter, and no criminal charge has been announced. Perez reportedly cooperated with investigators and acknowledged making some of the trades. The CFTC has not published a formal enforcement order detailing the allegations or announcing a settlement.
Kalshi Review Flagged Potential Irregularities
Kalshi’s internal surveillance operation identified unusual activity involving its mention markets and referred the matter to the CFTC. Market makers also raised concerns through whistleblower channels about possible irregularities in several trades. Kalshi froze Perez’s account before the disputed profits were withdrawn from the platform.
The company prohibits customers from trading with material nonpublic information obtained through their employment. It has also strengthened disclosure requirements for users participating in markets where workplace access could create an unfair informational advantage.
Mention markets allow traders to predict whether a public figure will use a particular word or discuss a specified subject. Such contracts can attract substantial attention during presidential addresses, economic announcements and other closely watched events.
White House Ethics Rules Under Scrutiny
The White House placed Perez on unpaid administrative leave after the allegations became public. Press Secretary Karoline Leavitt said Trump personally approved the decision, while officials stressed that White House employees must comply with ethics requirements governing nonpublic information.
The case highlights a growing weakness in political prediction markets. Employees who prepare speeches, policy announcements or government communications may possess valuable information before the public receives it. Even when a trade does not meet the legal definition of securities insider trading, it can still violate platform rules, employment policies or federal ethics standards.
Prediction Market Oversight Faces New Test
The inquiry could influence how prediction platforms monitor politically sensitive contracts and identify users with privileged access. Stronger employer disclosures, delayed trading windows and tighter restrictions on government employees may become necessary as these markets expand.
For readers following related developments, useful internal links could include US News, Government Policy, Business and Economy, Donald Trump news, financial regulation articles and previous coverage of prediction markets.
