CFTC Probes White House Teleprompter Operator Over Alleged Trump Speech Bets

Deep News
Jul 17

A person familiar with the matter has revealed that a White House teleprompter operator is under investigation by the U.S. Commodity Futures Trading Commission (CFTC) for allegedly profiting from bets placed on a prediction market platform related to speeches by former President Donald Trump.

Kalshi stated that after a trader was suspected of using confidential information to place bets on its exchange and profit over $100,000, the company has frozen more than $90,000 of that trader's profits in the client's account.

The company said it identified the so-called anomalous trading activity in March and reported it to the CFTC, which views these platforms as derivative exchanges under its jurisdiction. The investigation was earlier reported by ABC News.

"Our surveillance team quickly flagged these trades as anomalous following an exchange investigation and turned them over to the CFTC. We have been assisting the regulator with this matter and providing the evidence we have gathered, as we do with any referral," said Robert DeNault, Head of Compliance and Surveillance at Kalshi, in a statement on Thursday. The company did not disclose the trader's identity.

When asked about the investigation during a press briefing, White House Press Secretary Karine Jean-Pierre stated that President Joe Biden finds the matter "deeply regrettable and, frankly, a disgrace." She said the employee has been placed on unpaid administrative leave but did not reveal the person's name.

Online platforms like Kalshi and Polymarket allow users to trade "yes" or "no" on future events, ranging from congressional elections to which contestant will be eliminated on shows like "Love Island." Among these types of wagers are so-called "mention markets," which are tied to what public figures might say during public appearances.

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