Kalshi refers Trump teleprompter operator to CFTC over $100,000 insider trading profits
Federal prosecutors declined to pursue criminal charges, but the former teleprompter operator is in settlement talks with regulators to return earnings.
Kalshi has referred a case of alleged insider trading to the Commodity Futures Trading Commission (CFTC), involving Gabriel Perez, who has served as Donald Trump’s teleprompter operator since 2016. The prediction market platform accused Perez of using non-public information to place wagers on the content of the president’s speeches at high-profile events, generating more than $100,000 in profits.
According to reports, Perez placed bets on what Trump would say during over a dozen occasions, including the February State of the Union address, a Medal of Honor ceremony, and remarks delivered at the World Economic Forum. Kalshi’s “mentions” markets allow users to predict specific phrases or topics a public figure will address, a category that Perez reportedly exploited through his access to the president’s prepared remarks.
Robert DeNault, Kalshi’s head of enforcement, stated that the exchange’s surveillance team flagged the suspicious activity following an internal investigation. DeNault confirmed that the platform has charged the individual and is actively assisting regulators by providing evidence collected during the inquiry. The company noted that it handles such referrals in accordance with its standard procedures for maintaining market integrity.
While federal prosecutors have declined to open a criminal investigation into the matter, Perez is currently in discussions with the CFTC regarding a potential settlement. Reports indicate that the proposed resolution would require Perez to return his earnings and agree to refrain from similar trades in the future. A CFTC spokesperson declined to confirm or deny the existence of an active investigation, citing standard agency protocols.
The incident highlights ongoing regulatory scrutiny surrounding prediction markets, which have seen significant growth in popularity but also face challenges regarding market manipulation. Kalshi recently implemented new rules requiring users to disclose employment information before betting on markets with heightened insider or manipulation risk. This case follows other reported instances of alleged insider trading on prediction platforms involving various insiders, including former congressman George Santos and government employees.
