Kalshi Investigates Suspicious Bets on White House Press Secretary Selection
Prediction market Kalshi is investigating suspicious trades made minutes before the announcement of Katie Zacharia as White House press secretary under Donald Trump.
The prediction market platform Kalshi has launched an investigation into suspicious trades regarding the appointment of Katie Zacharia as the new White House press secretary, the Wall Street Journal reported on Saturday. According to the report, at least three bets were placed shortly before the media broke the news, potentially yielding thousands of dollars in payouts. Two of these trades were executed just 19 minutes before public reports emerged.
A company spokesperson confirmed that transactions predicting Zacharia's appointment are under review but declined to provide further details. The report does not definitively state that the bettors used insider information, and their identities remain undisclosed.
Suspicious Timing and High Returns
According to an analysis of public trading data by the newspaper, a $19 bet was placed on Thursday at 22:43 Eastern Time. Upon the closure of the prediction market, it is expected to yield a payout of $1,896.
Two additional bets, totaling approximately $74 and $80, were placed on Friday around 20:41 Israel time. They are projected to yield payouts of $3,689 and $4,023, respectively. Around 21:00, The New York Times and other media outlets began reporting on Zacharia's selection.
"I am confident that Katie will achieve excellent results for our country," Donald Trump wrote in a Truth Social post confirming the appointment.
Zacharia, a conservative commentator who previously worked briefly at the US Department of Homeland Security, was not considered a leading candidate for the position. In the days leading up to the report, trading on the site reflected only about a 1% chance of her appointment.
Insider Trading Concerns in Politics
Prediction platforms like Kalshi allow users to wager on future events, ranging from sports competitions to elections and political developments. While user identities are not publicly visible, the platform maintains internal records identifying the traders. The expansion of these sites raises concerns that individuals with access to non-public information might exploit it for financial gain.
The Wall Street Journal also reported that Gabriel Perez, a teleprompter operator for Donald Trump, was fired from the White House after earning over $100,000 from betting on the president's speeches. Additionally, following a series of well-timed wagers regarding military actions involving Iran, the White House previously issued a memo warning employees against utilizing non-public information for personal profit.