Archival photo Credit: ERIC BARADAT/AFP via Getty Images

(CNN)-- The federal agency that oversees the regulation of prediction markets in the United States is conducting an investigation into the longtime employee responsible for operating President Donald Trump's teleprompter, on suspicion of involvement in insider trading, according to two sources familiar with the matter.

The sources said that Gabriel Perez, a White House employee, conducted trades on the prediction platform Kalshi that raised suspicions about possible insider trading activity.

These trades focused on so-called "mention markets," where users can bet on words and phrases that public figures—including Trump—might say during speeches and events.

The Kalshi platform referred the results of its internal investigation to the Commodity Futures Trading Commission (CFTC), the federal agency responsible for regulating prediction markets.

One of the sources indicated that Perez made profits exceeding $90,000 from the trades in question, but those profits were frozen.

Robert Deneault, head of enforcement at Kalshi, said in a statement: "Our monitoring team spotted these trades and immediately referred them to the CFTC, and we are cooperating and providing assistance to the regulators."

According to one source, Perez has been cooperative with the CFTC's investigation.

CNN reached out to the White House, the CFTC, and Perez for comment.

In response to CNN's inquiries, a CFTC spokesperson stated that the agency "can neither confirm nor deny the existence of an investigation."

White House spokesperson Karoline Leavitt said Thursday that Trump is aware of the reports regarding Perez and that he "finds it very unfortunate and, frankly, a disgrace."

Leavitt added that it has been decided to place Perez on unpaid administrative leave, and that someone else will be assigned to operate the teleprompter on Thursday during Trump's address to the nation on election integrity.

This is the first known case of a White House employee allegedly involved in an insider trading scheme in prediction markets, which have seen a huge surge in popularity this year.

The White House had earlier this year warned its employees against insider trading in prediction markets; a memo issued on March 24 stated that "misuse of non-public information by government employees for financial gain is a very serious violation and will not be tolerated."

It is worth noting that the CFTC under Trump was a supporter of prediction markets, but the agency's chairman, Mike Sellig, appointed by Trump, pledged to aggressively combat insider trading, including cases that may arise from within the White House.

Perez is the veteran operator of Trump's teleprompter, having accompanied and worked with him for a decade.

He is one of the few aides Trump trusts regarding his remarks, and is often the last person to see Trump's speeches before delivery.

Given Trump's frequent last-minute changes to his public remarks, he works very closely with Perez, and has previously stated that Perez is the only one capable of operating his teleprompter.

Perez is among the highest-paid White House employees; according to a report submitted to Congress, his salary is $175,000, and he holds the official job title of "Deputy Assistant to the President and Technical Advisor."

Trump praised Perez during a campaign event in Reno, Nevada, in 2024, saying: "I have a guy named Gabe. He's excellent. I've dealt with some really bad people in this field, but I have Gabe."

It is worth noting that CNN has a partnership with the Kalshi platform and uses its data to cover major events, but the network's editorial staff are not allowed to trade in prediction markets.

In a statement to ABC, which first reported the news, White House spokesperson Davis Engel said: "The White House has strict ethics guidelines that we expect all employees and officials to follow." Engel added: "The employee in question is fully cooperating with the CFTC."