White House teleprompter operator exits after prediction market scandal

Perez allegedly secured more than $100,000 by trading contracts on Kalshi, a federally regulated prediction market. His trading activity involved predicting specific phrasing in high-profile appearances, including the State of the Union address and a World Economic Forum speech. The scheme unraveled after Kalshi’s internal surveillance systems detected irregular transactions and froze a significant portion of the accrued profits.

White House Press Secretary Karoline Leavitt condemned the actions as a disgrace, confirming that the president was briefed on the situation. While the White House has declined to specify if Perez resigned or was terminated, the administration previously placed him on administrative leave following the initial reports. Federal prosecutors have opted against a criminal investigation, yet the CFTC remains focused on whether the trades violated rules prohibiting the use of nonpublic information for market advantage.

This case highlights the growing regulatory tension surrounding prediction markets. Authorities are increasingly scrutinizing whether traditional insider trading statutes adequately cover event-based contracts. Recent enforcement actions have targeted a range of individuals, from former Congressman George Santos to a Google software engineer, prompting congressional inquiries into the oversight practices of platforms like Kalshi and Polymarket.