Kalshi says it caught Trump’s teleprompter operator insider trading

Prediction market platform Kalshi claims to have identified and reported Donald Trump's longtime teleprompter operator, Gabriel Perez, for allegedly engaging in insider trading. Perez reportedly leveraged foreknowledge of Trump's speech content to win over $100,000 across more than a dozen events on Kalshi's "mentions" markets, prompting a referral to the Commodity Futures Trading Commission (CFTC). This development, initially reported by ABC News on July 16, 2026, underscores persistent concerns surrounding the integrity of burgeoning prediction markets.

Allegations Against Trump's Teleprompter Operator

Gabriel Perez, who has consistently served as Donald Trump’s teleprompter operator since 2016, is now at the center of insider trading allegations on Kalshi. He is accused of leveraging his privileged position and advance knowledge of Trump's speech content to make profitable bets on the prediction market platform. According to the ABC News report, Perez specifically wagered on what the former president would say during more than a dozen significant events, including his notable February State of the Union address, a solemn Medal of Honor ceremony, and his remarks at the World Economic Forum.

Perez's alleged strategy involved participating in Kalshi's unique "mentions" markets, a category designed for users to predict whether a particular individual will utter specific words, phrases, or topics during public appearances. By having access to the teleprompter scripts before the events, Perez seemingly possessed an unfair advantage. His consistent success across these markets, reportedly accumulating over $100,000 in winnings, eventually triggered internal alarms within Kalshi due to the unusually accurate timing and outcomes of his trades.

Kalshi's Investigation and Regulatory Action

Kalshi's swift action in this case was confirmed by Robert DeNault, the platform’s head of enforcement. DeNault explicitly stated that Kalshi’s robust surveillance team proactively flagged Perez's suspicious trades. Following this initial detection, the platform launched its own internal investigation before officially referring the intricate matter to the Commodity Futures Trading Commission (CFTC), the primary federal agency responsible for overseeing prediction markets in the United States. Kalshi has since taken direct action by charging Perez internally for violating its terms and continues to provide extensive assistance to federal regulators by supplying all collected evidence.

Despite the gravity of the allegations, federal prosecutors have reportedly made the decision not to pursue a criminal investigation against Perez, as ABC News detailed. Instead, a less punitive path is being explored, with active discussions underway between the CFTC and Perez's legal representatives to achieve a settlement. This potential resolution would likely entail Perez repaying his illicit earnings and entering into an agreement to permanently cease any similar trading activities on prediction platforms, preventing future abuses of his privileged access.

Broader Insider Trading Problem in Prediction Markets

This incident, involving a high-profile figure's aide, further intensifies the ongoing debate and scrutiny surrounding the ethical boundaries and regulatory oversight of prediction markets. Platforms like Kalshi and its competitor Polymarket have consistently navigated challenges related to potential insider trading, a risk inherent to markets where real-world outcomes are predicted. The very structure of these markets, which allow wagers on everything from political events to celebrity statements, makes them inherently susceptible to exploitation by individuals possessing non-public information.

Over the past several years, the landscape of prediction markets has been dotted with numerous documented cases that have raised significant ethical and legal questions. Reports have detailed alleged insider trading by various individuals, including a Google employee, multiple politicians, political campaign staff members, a US soldier, and most notably, the disgraced former Congressman George Santos. These cases consistently highlight the ease with which individuals, if positioned correctly, can potentially exploit confidential information for substantial financial gain on these burgeoning platforms.

Kalshi's Efforts to Combat Misconduct

In a direct response to the persistent and growing concerns regarding market manipulation and insider trading, Kalshi has proactively introduced more stringent regulatory measures. Just last month, the platform implemented new rules requiring users to provide comprehensive employment information before they are permitted to participate in "markets with heightened insider or manipulation risk." This policy update represents a deliberate effort to enhance transparency and create a more secure trading environment, explicitly designed to deter individuals from leveraging their professional access for illicit personal profit.

Despite these new safeguards and the ongoing investigation into Perez, Kalshi continues to offer and manage "mentions" markets, including those directly related to Donald Trump's public appearances. For instance, the platform currently features active markets where users can place bets on specific phrases Trump might utter, or even the precise duration of his scheduled Thursday night speech. This upcoming address is reportedly centered on the critical topic of election integrity, underscoring the delicate balance Kalshi must maintain between providing engaging and dynamic prediction opportunities and rigorously upholding its commitment to preventing insider manipulation and ensuring fair play.

FAQ

Q: What is Kalshi, and what are "mentions" markets?

A: Kalshi is a regulated prediction market platform that allows users to bet on the outcome of future events. "Mentions" markets are a specific type of market offered by Kalshi where users predict whether a public figure will say certain words or phrases during an event, such as a speech.

Q: What constitutes insider trading in the context of prediction markets?

A: Insider trading on prediction markets occurs when an individual uses non-public, material information—obtained through their position or access—to make bets that give them an unfair advantage over other participants. In this case, Gabriel Perez's alleged access to Trump's teleprompter scripts before speeches would constitute such inside information.

Q: What are the potential consequences for Gabriel Perez?

A: While federal prosecutors have declined a criminal investigation, Gabriel Perez is reportedly in discussions with the Commodity Futures Trading Commission (CFTC) to settle the case. This settlement is expected to include him returning his earnings, which exceeded $100,000, and agreeing to refrain from similar trading activities on prediction markets in the future.