Prediction market platform Kalshi has launched an investigation into a series of bets placed shortly before US President Donald Trump announced Katie Zacharia as his next White House press secretary, according to The Wall Street Journal.
The company is examining at least three trades made on its platform ahead of media reports confirming Zacharia’s appointment at about 2 p.m. on Friday, the newspaper reported.
Before Trump’s announcement, Zacharia reportedly had only a one per cent chance of being selected for the position on the platform.
One trader placed a $19 bet on Thursday evening predicting her appointment, with the wager expected to yield $1,896. Two additional bets, worth approximately $74 and $80, were placed at 1:41 p.m. on Friday. They are expected to pay out $3,689 and $4,023, respectively.
The timing and potential returns from the trades have drawn scrutiny, prompting Kalshi to examine the transactions.
Zacharia is set to replace Karoline Leavitt, who left the position earlier this year after having a child. Leavitt has since taken up a role as a commentator for Fox News.
The incoming press secretary is a conservative political commentator and communications adviser to Trump’s media company. She previously worked briefly as a spokesperson and deputy assistant secretary at the Department of Homeland Security.
Announcing her appointment on Truth Social, Trump described Zacharia as a “devoted fan and member of MAGA”.
“I am confident that Katie will deliver strong results for our Country as the next White House Press Secretary, as she has the respect of, and will work fantastically with, the Media, the American People, and my Administration,” the president continued.
The investigation comes amid growing scrutiny of prediction market activity involving information connected to Trump and his administration.
In July, Gabriel Perez, who operated the teleprompter for the president, was removed from his position after reportedly making more than $100,000 in profits from bets he placed on Kalshi concerning Trump’s speeches.
Perez was subsequently fined $172,000 by the Commodity Futures Trading Commission.
The latest inquiry raises questions about whether traders may have acted on information about Zacharia’s appointment before it became public. However, the reported investigation and the timing of the wagers do not, on their own, establish that the traders had access to confidential information or engaged in wrongdoing.
