Overview
- Gabriel Perez no longer works in the federal government, a White House official said Tuesday, after he was placed on unpaid leave earlier this month over reports of betting on President Trump’s speeches.
- ABC News reported that Perez used advance access to prepared remarks to win more than $100,000 on Kalshi contracts that pay out when specific words or phrases are spoken.
- Kalshi’s surveillance team flagged the trades, referred the activity to the Commodity Futures Trading Commission, and the company says it is cooperating with regulators.
- Manhattan federal prosecutors reportedly declined to open a criminal case, while regulators are said to be negotiating a civil settlement that could require Perez to forfeit profits and face trading restrictions.
- The episode follows a March White House memo warning staff not to use nonpublic information for private gain and has increased pressure for tighter platform rules and possible new laws restricting officials’ use of prediction markets.