White House Insider Faces Allegations Over Prediction Market Profits
As prediction markets gain popularity, a new scandal has emerged involving a White House insider accused of exploiting privileged information for financial gain. Federal regulators are negotiating a settlement with Gabriel Perez, President Trump’s long-standing teleprompter operator, who allegedly made close to $100,000 on the prediction market platform, Kalshi.
Perez is suspected of using insider knowledge of the president’s prepared remarks to profit from “mention markets,” where individuals bet on specific words or phrases the president might use during public appearances. This marks a significant case where a White House insider is scrutinized for potentially capitalizing on confidential access.
Kalshi’s prediction markets allow wagers on a wide range of topics, including political events and global policies. The platform has seen rapid growth, spurring several high-profile insider trading cases. However, Perez’s situation is unique as it involves someone directly connected to the White House.
According to sources close to the investigation, Kalshi’s advanced surveillance systems identified irregular betting patterns linked to Perez, prompting an inquiry by the Commodity Futures Trading Commission (CFTC). As a deputy assistant to the president, Perez earned $175,000 annually and was occasionally mentioned by Trump during public appearances.
Before an upcoming Trump address, traders have already staked over $800,000 on potential presidential phrases like “Hormuz,” “rigged election,” and “fake news.” Kalshi’s detection tools played a crucial role in uncovering Perez’s activities, leading to a freeze on approximately $90,000 of his earnings and a ban from the platform.
Kalshi’s enforcement chief, Robert DeNault, stated, “Our surveillance team promptly flagged and referred these trades to the CFTC after an exchange investigation. We have been assisting regulators on this matter and provided evidence we collected, as we do in any referral.”
Despite the ongoing investigation, Perez has not publicly commented on the case. White House Press Secretary Karoline Leavitt condemned the actions, describing them as “a disgrace,” and confirmed that Perez is on unpaid administrative leave.
Instances of insider trading on prediction markets are not limited to this case. In recent months, federal prosecutors charged a U.S. Army special forces soldier and a Google software engineer with insider trading on platforms like Polymarket, Kalshi’s major competitor. Additionally, former Republican congressman George Santos is under investigation for allegedly manipulating a Kalshi market to his advantage.
In light of these developments, a memo was issued to White House staff in March, warning against using nonpublic information for personal gain on prediction markets. The document emphasized the criminal nature of such activities and the severe consequences for those involved.
While it remains uncertain whether the Department of Justice will pursue further action against Perez, the case highlights the growing intersection of politics and financial speculation, raising questions about the ethical boundaries of using insider information in the digital age.
