The Commodity Futures Trading Commission (CFTC) has launched an investigation into allegations that Gabriel Perez, President Donald Trump’s teleprompter operator, made approximately $100,000 betting on the content of Trump’s speeches on the trading platform Kalshi. Reports from various media outlets, including ABC News, indicate that Perez placed bets on over a dozen speeches within a three-month period, which included Trump's State of the Union address in February.
White House Press Secretary Karoline Leavitt announced on Thursday that Perez has been suspended from his duties while the investigation is ongoing. "Obviously, I’m aware of the report. The president is too. I spoke with him about it. He believes it’s deeply unfortunate and, frankly, a disgrace," Leavitt stated. She confirmed that Perez, who has been Trump's teleprompter operator since 2016, has been placed on paid administrative leave as he cooperates with the CFTC.
The ABC report further revealed that Perez typically had access to Trump’s prepared remarks before they were delivered, and he sometimes adjusted his betting as Trump deviated from his script. Investigators found instances where Perez adjusted or abandoned bets mid-speech if Trump omitted words included in the prepared remarks. Perez has reportedly discussed some of this trading activity in conversations with regulators, and it appears that the CFTC may be open to reaching a settlement with him. Meanwhile, federal prosecutors have decided not to pursue criminal charges.
Kalshi’s Head of Enforcement, Robert DeNault, noted that the company identified and investigated the trades in question and subsequently referred them to the CFTC. "Our surveillance team promptly flagged and referred these trades to the CFTC after an exchange investigation," DeNault remarked. Kalshi had noticed irregular trading patterns that deviated from typical trading behavior in what is termed a "mention market." Upon further investigation, they discovered that the individual involved was employed by the federal government in his role as a teleprompter operator.
The company acted quickly by freezing Perez's account and seizing over $90,000 linked to the controversial trades. They have been cooperating with regulators throughout the ongoing investigation, which has lasted months. Despite these allegations, Kalshi maintained that they monitor their mention markets with the same scrutiny as any other market.
Trump's position on prediction markets has been mixed. Earlier this year, he expressed that he was "never much in favor" of betting on prediction markets. Shortly afterward, he emphasized on his Truth Social platform the importance of respecting the CFTC’s authority over event contracts, while criticizing several state governors over enforcement actions against such platforms.
Additionally, Trump’s son, Donald Jr., has been associated with both Kalshi and its competitor Polymarket, receiving about $300,000 worth of equity shares in Kalshi when he became involved in early 2025. Kalshi’s valuation has reportedly increased significantly since then.
The ongoing scandal involving Perez is part of a broader discussion surrounding perceived insider trading in political prediction markets. Other recent incidents include the arrest of U.S. Army soldier Gannon Ken Van Dyke for utilizing classified information for trading, a Google employee allegedly betting on user search trends based on internal data, and former Rep. George Santos accused of trading contracts on Kalshi regarding his attendance at the State of the Union, which he ultimately missed. In response to growing concerns, the White House issued warnings against insider trading on prediction markets, while the CFTC has reiterated a stringent zero-tolerance policy towards such practices, leading to a Senate ban on staff trading in these markets and multiple legislative proposals aimed at preventing insider trading activities.
