Gabriel Perez, President Donald Trump's teleprompter operator for about a decade, is in negotiations with the Commodity Futures Trading Commission over allegations that he used insider knowledge to place bets on Kalshi about Trump's speeches, according to ABC News on Thursday. The alleged bets were placed over three months, including a speech Trump made in January at the World Economic Forum in Davos, Switzerland, and Perez allegedly adapted his bets mid-speech as Trump deviated from the teleprompter. Kalshi alerted the CFTC to the suspicious trading activity, which comes amid growing regulatory scrutiny of prediction markets following similar insider trading cases.
Perez Allegedly Placed Bets on Trump Speeches Over Three Months
ABC News reported that Gabriel Perez made hundreds of thousands of dollars by placing bets on what President Trump would say during speeches. The bets were placed over three months, including Trump's January speech at the World Economic Forum in Davos, Switzerland. Sources familiar with the matter told ABC News that Perez allegedly adapted to Trump's frequent deviations from the teleprompter and would "back out of certain bets mid-speech." Perez has operated Trump's teleprompter for about a decade.
Kalshi Alerted CFTC to Suspicious Trading Activity
Kalshi alerted the CFTC to the suspicious trading activity, according to the ABC News report. The company told ABC News that its surveillance team quickly flagged the trades and referred the matter to regulators. White House spokesperson Davis Ingle told ABC News that the White House has "strict ethics guidelines." In an emailed statement, a CFTC spokesperson said the agency "can't confirm or deny an investigation." The White House and Kalshi did not immediately respond to requests for comment from The Block.
Similar Insider Trading Cases Resulted in Arrests and Charges
In January, lawmakers raised alarms after a Polymarket account wagered that Venezuelan President Nicolás Maduro would be "out" by the end of this month, netting $400,000. Prosecutors subsequently arrested active-duty U.S. Army Soldier Gannon Ken Van Dyke, 38, for allegedly using confidential information to place that bet. In May, the U.S. charged a software engineer at Google with using internal search data to make $1.2 million on Polymarket. These cases have raised questions about how to regulate prediction markets as billions of dollars are wagered on elections, economic data, sporting events, and other real-world events.
Lawmakers Introduced Legislation to Restrict Prediction Market Trading
Lawmakers have introduced legislation to block elected officials and others from making certain bets on prediction markets around government policy and government action. The Senate has also banned itself from trading on prediction markets. Polymarket and Kalshi have put out measures over the past few months to prevent insider trading.
FAQ
What did Gabriel Perez allegedly do on Kalshi?
Gabriel Perez, President Trump's teleprompter operator, allegedly used insider knowledge to place bets on Kalshi about what Trump would say during speeches over three months, including Trump's January speech at the World Economic Forum in Davos, Switzerland.
How did Kalshi respond to the suspicious trading activity?
Kalshi's surveillance team quickly flagged the trades and alerted the Commodity Futures Trading Commission to the suspicious activity, according to ABC News.
What similar insider trading cases have occurred on prediction markets?
In January, prosecutors arrested U.S. Army Soldier Gannon Ken Van Dyke for allegedly using confidential information to place a $400,000 bet on Polymarket about Venezuelan President Nicolás Maduro. In May, the U.S. charged a Google software engineer with using internal search data to make $1.2 million on Polymarket.
