Full Breakdown
White House Teleprompter Operator Accused of Insider Trading on Prediction Market
7/17/2026, 4:01:55 AM
Core Event
Gabriel Perez, a technical assistant who has operated President Donald Trump’s teleprompter since the 2016 campaign, is alleged to have used advance knowledge of the president’s prepared remarks to place bets on the prediction-market platform Kalshi. Federal regulators from the Commodity Futures Trading Commission (CFTC) say the trades generated more than $100,000 in profit across a three-month span that included the February State of the Union address, a December primetime speech, a January appearance at the World Economic Forum in Davos, and a March Medal of Honor ceremony. Kalshi froze roughly $90,000 of the winnings before they could be withdrawn. Perez has been placed on unpaid administrative leave and is in settlement talks with the CFTC that could require him to surrender the profits and refrain from future trades.
Background & Context
Kalshi’s “mentions” market lets users wager on whether specific words or phrases will appear in public speeches. The platform’s surveillance system flagged unusual betting patterns tied to Trump’s speeches in March 2026 and reported the activity to the CFTC. This investigation follows the Department of Justice’s first insider-trading prosecutions involving prediction markets—one case involving a U.S. Army special-forces soldier who bet on the capture of Venezuelan President Nicolás Maduro, and another involving a Google engineer who bet on user-search trends.
Data & Statistics
- Estimated profit from bets: > $100,000 (sources report $90,000–$100,000 frozen).
- Salary as deputy assistant to the president: $175,000 per year.
- Number of speeches bet on: more than a dozen over three months.
- Kalshi’s “mentions” contracts typically involve common terms such as country names, economic words, or campaign slogans.
Official Statements & Responses
The White House emphasized its ethics rules. Press secretary Karoline Leavitt said the president had been briefed and described the conduct as “deeply unfortunate and frankly a disgrace.” She confirmed Perez’s unpaid leave and that another staffer would operate the teleprompter for the upcoming address. White House spokesperson Davis Ingle reiterated that “the staffer in question is fully cooperating with the CFTC.” Kalshi’s head of enforcement, Robert DeNault, noted that the company “promptly flagged and referred these trades to the CFTC” and has been assisting regulators. The CFTC declined to comment publicly on the investigation.
Criticism & Opposition
Lawmakers from both parties have introduced legislation to bar federal officials from using insider information on prediction markets. Senator John Curtis (R-UT) highlighted the case as evidence that existing safeguards are insufficient and urged a broader ban covering the president, vice president, members of Congress, and senior executive-branch staff. Critics argue that the lack of criminal charges—Manhattan federal prosecutors declined to open a case—leaves a regulatory gap that could encourage similar conduct.
Conflicting Reports & Gaps
Sources differ on the exact amount won: some cite “more than $90,000,” while others reference “over $100,000.” The CFTC has not confirmed the existence of a formal investigation, and the Department of Justice has not indicated whether it will pursue criminal charges. Details about the specific words or phrases bet on remain undisclosed.
Verbatim Quotes
- “The staffer in question is fully cooperating with the CFTC.” — Davis Ingle, White House spokesperson
- “Our surveillance team promptly flagged and referred these trades to the CFTC, and we are cooperating and assisting regulators,” — Bobby DeNault, Kalshi lead lawyer
- “You know, when you go up here, you take a big chance, especially me because I go off teleprompter about 80% of the time,” — Donald Trump
- “He believes it's deeply unfortunate and, frankly, a disgrace.” — Karoline Leavitt, White House press secretary
What’s Next
The CFTC is negotiating a potential civil settlement with Perez that would require the return of profits and a prohibition on future trades. Kalshi has updated its user-policy to require disclosure of employment for participants in “mentions” markets. Congressional bills aimed at extending insider-trading bans to all federal officials remain under consideration but have not yet been scheduled for a vote.
