Woofun AI reports that Gabriel Perez, the teleprompter operator for Donald Trump since 2016, is engaged in settlement discussions with federal regulators regarding alleged insider trading on Kalshi markets, as disclosed by ABC News. The controversy centers on Perez’s exploitation of nonpublic information to wager on specific speech outcomes, drawing immediate regulatory attention to the intersection of political access and financial speculation.

The core of the allegation involves Perez generating more than $100,000 in profits by trading on Kalshi's "Mentions" markets, which allow bets on whether specific words or phrases appear in public addresses. These transactions were flagged by Kalshi’s surveillance systems and subsequently referred to the Commodity Futures Trading Commission. Perez reportedly placed wagers on more than a dozen speech-related contracts, leveraging his technical role to anticipate content before it was publicly delivered.

Regulators identified betting activity spanning roughly three months, including high-profile events such as the State of the Union address and remarks at the World Economic Forum.

Notably, Perez sometimes exited positions mid-speech when Trump deviated from prepared texts containing wagered terms. Following the report, White House Press Secretary Karoline Leavitt confirmed that Perez was placed on unpaid administrative leave, with Trump labeling the alleged conduct a "disgrace."

Per Woofun AI, this case reflects a broader pattern of insider trading scrutiny across prediction markets, where nonpublic information has yielded significant profits. In March, six Polymarket traders earned approximately $1 million by correctly betting the U.S. would strike Iran before the end of February, with Bubblemaps data showing bets placed hours before explosions in Tehran. Similarly, wallets profited over $1.2 million from bets on an Axiom DeFi investigation shortly before ZachXBT published insider trading allegations, while another trader gained $400,000 wagering on the capture of Nicolás Maduro prior to public confirmation.

These incidents have accelerated legislative and regulatory responses to prediction market vulnerabilities. Last month, Republican Representative Bryan Steil, chair of the House subcommittee on digital assets, introduced legislation banning Congress members and their immediate families from trading prediction market contracts tied to public policy and political outcomes. This marks a critical juncture in defining legal boundaries for information-based financial speculation in politically sensitive domains.