CFTC probes Trump’s teleprompter operator for insider trading

Gabriel Perez, longtime teleprompter operator for President Donald Trump, is currently under federal investigation for possible insider trading related to prediction market platform Kalshi, according to two sources familiar with the case.

Kalshi detected unusual trading activity during its customer onboarding and market monitoring processes, which prompted the company to refer the matter to the Commodity Futures Trading Commission, one of the sources said.

“Our surveillance team quickly identified and reported these trades to the CFTC after an internal exchange investigation. We’ve been working with regulators and have provided all relevant evidence,” said Robert DeNault, Kalshi’s head of enforcement, in a statement to Reuters.

Perez, the teleprompter operator, is cooperating fully with the CFTC, the second person familiar with the investigation added. Both sources requested anonymity due to the sensitive nature of the case.

“The president is aware of the teleprompter operator’s situation, and the staff member is currently on unpaid leave,” White House press secretary Karoline Leavitt told reporters Thursday. She later confirmed Perez will no longer be working at the White House.

When asked if other White House staff members had access to Kalshi or Polymarket on official devices, Leavitt responded that she was unaware. She also stated there are no known cases of other staff using privileged information for betting purposes.

Increase in Insider Trading Investigations

Recent months have seen multiple officials and executives under scrutiny for insider trading allegations involving prediction market platforms like Polymarket and Kalshi.

Earlier this year, a US Army soldier faced charges for placing bets connected to the detention of Venezuelan leader Nicolás Maduro on Polymarket. In June, federal regulators launched an inquiry into former Congressmember George Santos over potential insider trading on Kalshi.

“Mention markets” on Kalshi allow traders to bet on whether certain words or phrases will be spoken during public events such as speeches, broadcasts, or corporate earnings calls.

Regulatory authorities, including the CFTC, have expressed concerns about these markets, citing vulnerabilities to insider information and manipulation by those with early access to speech transcripts or prepared remarks.

Kalshi froze Perez’s account before he could withdraw over $90,000 in profits, according to sources.

Internal investigations involved a thorough interview with Perez, and whistleblowers flagged irregular trades in several mention markets, the first source added.

In June, Kalshi announced plans to require users to disclose employment details for certain sensitive contracts and to introduce a whistleblower portal, aiming to meet regulatory standards for market fairness.

Startups like Kalshi and Polymarket have faced ongoing regulatory challenges over concerns about market manipulation and insider trading. These platforms enable trading on the outcomes of future events, including sports, elections, and weather conditions.

ABC News was the first to report the CFTC’s investigation into Perez earlier today.