Federal authorities are investigating a series of trades on prediction market platform Kalshi that were linked to Gabriel Perez, the longtime teleprompter operator for the President, according to people familiar with the matter.
Two sources said Kalshi identified the suspicious trading activity through information gathered during customer onboarding and routine market surveillance. The exchange then referred the matter to the Commodity Futures Trading Commission (CFTC), one of the sources said.
Robert DeNault, head of enforcement at Kalshi, said in a statement: "Our surveillance team promptly flagged and referred these trades to the CFTC after an exchange investigation. We have been assisting regulators on this matter and provided evidence we collected, as we do in any referral."
One person familiar with the investigation said Perez is fully cooperating with the CFTC. The sources requested anonymity because the inquiry is confidential.
The White House acknowledged awareness of the teleprompter operator and said the staffer has been placed on unpaid leave, White House press secretary Karoline Leavitt said on Thursday. Leavitt later added that Perez will no longer be working at the White House.
A spokesperson for the CFTC said the agency "can’t confirm or deny an investigation."
Kalshi operates so-called mention markets - contracts that allow traders to bet on whether a particular word or phrase will be spoken during public events such as speeches, broadcasts or corporate earnings calls. Such markets have attracted scrutiny, with regulators concerned they could be vulnerable to insider trading or manipulation by individuals who have advance access to prepared remarks or transcripts.
According to a source, Kalshi froze the account in question. The source said the account holder had accumulated profits of somewhere over $90,000, but those gains were stopped before funds were withdrawn from the platform.
The firm conducted an internal inquiry that included interviewing the trader, the first source said. Market makers also reported potential irregularities in several mention-market trades through whistleblower channels, that source added.
In June Kalshi announced it would require employment disclosures for users trading on sensitive contracts and launch a whistleblower portal - measures intended to align the platform with regulatory expectations for market integrity.
Startups running prediction markets, including Kalshi and others, have faced regulatory risks for years related to market manipulation and insider trading. These platforms let users trade contracts tied to the outcomes of future events such as sports results, election outcomes and weather occurrences.
ABC News reported earlier on Thursday that the CFTC was conducting an investigation into the matter.