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Prediction market platform Kalshi is investigating suspicious trades linked to President Donald Trump's appointment of Katie Zacharia as White House press secretary. The investigation follows several bets placed shortly before the October 9 announcement.
Zacharia had received only a 1% chance of securing the position on Kalshi before the news emerged. However, three wagers correctly predicted her selection, raising questions about whether traders had access to private information.
The Wall Street Journal reported that Kalshi is reviewing at least three trades placed before Zacharia's appointment became public. A company spokeswoman confirmed the investigation but declined to provide further details about the traders or their activities.
According to the report, one trader placed a USD 19 wager at approximately 10:43 p.m. ET on Thursday, October 8. The bet was expected to return USD 1,896 once the market settled. Meanwhile, two additional wagers appeared shortly before news organizations disclosed Trump's decision.
The Friday bets, placed around 1:41 p.m. ET, were worth approximately USD 74 and USD 80. Their expected payouts reached USD 3,689 and USD 4,023, respectively. Together, the three wagers involved about USD 173 and carried potential payouts of USD 9,608.
Kalshi has not publicly identified the traders or established whether the wagers involved improper access to information. The timing of the bets has drawn scrutiny, but the investigation itself does not establish wrongdoing.
Trump announced Zacharia's appointment on Friday through Truth Social. She will replace Karoline Leavitt, who left the position on August 27. Leavitt had served since January 2025 before stepping down to spend more time with her children.
Zacharia previously worked as a senior communications adviser for Trump Media & Technology Group, which operates Truth Social. She also briefly served as a Department of Homeland Security spokesperson earlier in 2026. Additionally, Zacharia appeared as a conservative commentator on Fox News and Newsmax.
Trump described Zacharia as “a loyal and brilliant supporter, right from the beginning.” Zacharia thanked the president in a social media post, calling her appointment the “honor of a lifetime.” Neither statement addressed the Kalshi investigation.
The investigation follows a separate case involving former White House teleprompter operator Gabriel Perez. In July, federal regulators investigated his Kalshi bets on words expected to appear in Trump's speeches. Kalshi identified the trading activity and referred the matter to the Commodity Futures Trading Commission.
Federal regulators later found that Perez earned USD 107,500 using advance knowledge of presidential speeches. Under an August settlement, Perez had to surrender his profits and pay a USD 65,000 penalty. He also received a three-year trading ban.
Prediction markets allow traders to place bets on political appointments, economic developments, and other events. However, using confidential information for personal trading gains can violate federal rules.
In Zacharia's case, Kalshi has not disclosed whether it has restricted withdrawals or referred the trades to regulators. The company has also not announced when its investigation will conclude.
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