White House teleprompter operator Gabriel Perez is no longer employed by the federal government after being placed on unpaid leave over allegations that he used insider knowledge to bet on President Donald Trump’s speeches, according to another official.

Speaking on condition of anonymity, the official said that Perez had left his government job but did not say whether he resigned or was fired.

Inside the Allegations

The White House had suspended Perez earlier this month following an ABC News report that alleged he made more than $100,000 through bets on the online prediction market Kalshi. The report said the wagers were based on advance knowledge of what Trump would say during major speeches, including the State of the Union address earlier this year.

The allegations drew a sharp response from the White House. Press secretary Karoline Leavitt described the reported insider trading as “deeply unfortunate and, frankly, a disgrace.” Kalshi also responded after the report was published.

Robert Denault, the company’s lawyer and head of enforcement, said in a post on X that its surveillance team detected the trades, investigated them, and referred the matter to the US Commodity Futures Trading Commission (CFTC). Denault’s statement did not identify Perez by name.

Legal Battles

Kalshi has faced legal hurdles this year in Massachusetts, Michigan, Nevada, and Washington. At the same time, it has also tightened its own rules. In April, the prediction market suspended three political candidates for betting on elections they were contesting after determining that the trades amounted to political insider trading under its CFTC-approved rules.

An insider trading case on Polymarket also surfaced that same month. Federal prosecutors charged US soldier Gannon Ken Van Dyke with allegedly betting on whether former Venezuelan President Nicolás Maduro would be removed from power. Authorities said Van Dyke, who worked on the operation targeting Maduro, made about $400,000 from the trades.

The legal battle over prediction markets has also taken a new turn. This week, a federal judge temporarily blocked Minnesota from enforcing a new law that would have banned prediction markets in the state. The ruling gave a temporary win to Kalshi, Polymarket, and the CFTC as the case moves forward.

Judge Katherine Menendez said the law is likely preempted by the federal Commodity Exchange Act because many event contracts may qualify as federally regulated swaps. The law, signed by Governor Tim Walz in May, was set to take effect on Saturday. The judge said the injunction could later be narrowed if needed.

Source: CryptoPotato