Recent insider trading allegations have brought attention to prediction markets, where users bet on the outcomes of future events. Kalshi, a prominent U.S. prediction market, has seen nearly $6 million wagered on which Trump administration officials will leave their positions before January 2027.
Gabriel Perez, a teleprompter operator for President Donald Trump, reportedly earned over $100,000 by betting on specific words used in Trump's speeches. White House Press Secretary Karoline Leavitt confirmed that Perez is no longer employed as investigations continue into the potential misuse of privileged information.
In another case, U.S. Army Special Forces soldier Gannon Ken Van Dyke was charged with using classified information to place bets on Polymarket regarding the capture of former Venezuelan dictator Nicolas Maduro, resulting in a payout of over $400,000.
The issue extends beyond government employees, with several political candidates identified for placing bets on their own elections. House Oversight and Government Reform Committee Chairman James Comer announced an investigation into Kalshi and Polymarket over allegations of insider trading and regulatory loopholes. The White House is also reviewing whether staff members may be using nonpublic information for betting, leading to a reminder that such actions are prohibited.