A White House staff member with advance access to presidential speeches allegedly earned more than $100,000 through Kalshi mention markets. The case raises fresh questions about how prediction exchanges prevent trading based on private workplace information.
Good to Know
Kalshi mention contracts pay out according to whether a speaker uses selected words during an event. Traders can buy contracts linked to terms such as “Iran,” “Biden” or “Coke” before a Donald Trump speech.
CFTC investigators reportedly believe Perez had an advantage that ordinary traders could not access. His role as deputy assistant gave him final speech copies and updates on late edits before public delivery.
Investigators linked Perez to more than a dozen contracts over three months, according to ABC News. The wagers covered speeches at the World Economic Forum, the State of the Union and a Medal of Honor ceremony.
Trump often departs from prepared remarks, creating a risk even for anyone who has seen a script. Investigators reportedly found cases where Perez sold positions during speeches after Trump skipped planned sections.
Kalshi said its surveillance team identified the activity and contacted the CFTC.
“Our surveillance team promptly flagged and referred these trades to the CFTC, and we are cooperating and assisting regulators,” Kalshi lead lawyer said.
The White House also confirmed that Perez is cooperating. He was later placed on unpaid leave after the allegations became public.
“The White House has strict ethics guidelines that we expect all staffers and officials to follow,” spokesperson Davis Ingle said. “The staffer in question is fully cooperating with the CFTC.”
A settlement under discussion would reportedly require Perez to return his profits and stop trading similar contracts. Manhattan federal prosecutors declined to pursue a criminal investigation, according to ABC News.