Kalshi Claims Insider Trading Involving Trump’s Teleprompter Operator

Users on Kalshi who were betting on President Donald Trump’s speeches faced stiff competition from an unexpected source: the president’s teleprompter operator. Reports indicate that Gabriel Perez, who has been operating Trump’s teleprompter since 2016, allegedly used insider knowledge to place bets on Kalshi, a prominent prediction market platform where users can wager on a wide range of events. One of the categories available on Kalshi is “mentions” markets, where participants predict what a specific individual will say during significant events.

Perez is said to have placed bets on Trump’s statements during various occasions, including the February State of the Union address, a Medal of Honor ceremony, and comments made at the World Economic Forum. His reported winnings on Kalshi exceeded $100,000. With Trump scheduled to deliver another speech focusing on election integrity, multiple markets on Kalshi are active, allowing users to bet on his statements and the duration of his speech.

“Our surveillance team quickly identified and reported these trades to the Commodity Futures Trading Commission after an internal investigation,” stated Robert DeNault, head of enforcement at Kalshi. “We have charged this individual and are cooperating with regulators, providing evidence as we do in any referral.”

Kalshi has not commented on inquiries regarding other bettors in these markets or the possibility of refunds. A spokesperson for the CFTC, which oversees prediction markets, mentioned that the agency could neither confirm nor deny any ongoing investigation.

Discussions between the CFTC and Perez have reportedly included potential resolutions, such as him returning his earnings and refraining from similar trades in the future. Federal prosecutors have opted not to pursue a criminal investigation.

Insider trading concerns have become a significant issue in the realm of prediction markets, particularly as platforms like Kalshi and Polymarket have gained traction in recent years. Individuals from various backgrounds, including a Google employee, politicians, campaign staff, a US soldier, and former congressman George Santos, have been implicated in using insider information for betting on these markets.

In response to these concerns, Kalshi recently introduced rules requiring users to disclose their employment details before participating in markets deemed to have a higher risk of insider trading or manipulation.