Kalshi, a platform allowing users to bet on virtually anything, has reportedly caught the president’s teleprompter operator, Gabriel Perez, engaging in insider trading. Perez made $100,000 by placing bets related to Donald Trump's speeches.
The federal investigation suggests that Perez used his inside knowledge of what the president would say during significant events to gain financial advantage. These events included the February State of the Union address and remarks at the World Economic Forum. Kalshi’s own surveillance team flagged these trades, referring them to regulators for further action.
The CFTC is discussing settlement options with Perez, which could include giving back his earnings and a promise not to engage in similar activities. However, no criminal investigation has been opened by federal prosecutors.
Insider trading concerns are not new to prediction markets. In recent years, notable individuals from various fields have been implicated in such practices, leading platforms like Kalshi to implement stricter rules regarding the disclosure of employment information for bettors involved in high-risk markets.
