Kalshi says it caught Trump’s teleprompter operator insider trading
Kalshi says it identified and referred suspected insider trading by Gabriel Perez, Donald Trump’s longtime teleprompter operator, after he allegedly bet on words the president would use in public speeches. The case highlights a central risk for fast-growing prediction markets: people with advance access to event information may gain an unfair advantage over ordinary bettors.
Federal investigators reportedly believe Perez used inside knowledge to trade on more than a dozen Kalshi “mentions” markets, including markets tied to Trump’s State of the Union address and other appearances, winning over $100,000. Kalshi says it charged Perez and provided evidence to the Commodity Futures Trading Commission; ABC News reports a possible settlement could require him to repay winnings and stop similar trading, while federal prosecutors reportedly declined a criminal investigation. Kalshi introduced employment-disclosure requirements last month for markets considered at higher risk of insider trading or manipulation.
In short
- Trump’s teleprompter operator allegedly used advance speech knowledge to place bets.
- The bets reportedly generated more than $100,000 in winnings.
- Kalshi referred the case to the US commodities regulator.
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The case for
People with privileged access to information about a forthcoming speech can place ordinary bettors at a serious disadvantage, so prohibiting and pursuing such trades can help preserve fair markets and public confidence. Kalshi’s referral and employment disclosures may show that prediction-market operators can identify risks and strengthen safeguards as these markets grow.
The case against
The case also raises questions about how clearly insider-trading rules apply to speech-related prediction markets and whether the platform’s safeguards were adequate before the alleged trades. A proportionate response should rest on transparent rules and reliable evidence; where prosecutors reportedly declined a criminal investigation, that may support resolving the matter through repayment and trading restrictions rather than implying criminal guilt.
Explained simply
Kalshi is a prediction market platform where people can bet on whether specific events will happen. On these markets, users trade on outcomes such as whether particular phrases will appear in speeches, economic reports will be released, or other news events will occur. The platform is one of the few legally operating betting sites of this type in the United States and has grown significantly in recent years.
Kalshi says that Gabriel Perez, who has been Donald Trump's teleprompter operator for many years, engaged in insider trading on its platform. According to reports, Perez wagered on mentions markets, where bettors predict which words Trump would use in his public speeches, and won over $100,000 through these trades because of his advance knowledge of what the president planned to say. Federal investigators reportedly examined whether Perez made such trades on more than a dozen occasions, including around Trump's State of the Union address.
The case highlights a fundamental vulnerability in prediction markets: people with inside knowledge about future events can gain substantial advantages over ordinary bettors. Kalshi has reported the suspected trading abuse to the Commodity Futures Trading Commission, which regulates prediction markets. The company has since introduced new employment-disclosure requirements for workers involved in events where market trading occurs.