Betting activity by former Rep. George Santos on the prediction market Kalshi has been reported to federal authorities, according to a source familiar with the investigation [1]. Kalshi notified both the Justice Department and the U.S. Commodity Futures Trading Commission (CFTC) about bets Santos placed regarding his attendance at President Donald Trump’s State of the Union address in February [1]. Santos publicly stated to his followers on X that he would attend the speech, saying, “I’m gonna be in the gallery,” but ultimately did not attend the event [1]. Kalshi detected that Santos had been placing bets against his own attendance, raising suspicions of potential insider trading [1].
Santos acknowledged on X that the DOJ might be investigating him, stating, “I will comment further when appropriate and clarify everything accordingly while being mindful and respectful of any process that might be underway,” and called the accusations “preposterous” [1]. The Justice Department and Kalshi declined to comment, while a CFTC representative stated the commission cannot confirm or deny any investigation [1]. However, a source familiar with the agency confirmed that Santos is under investigation, though specifics regarding the nature and timing of the probe were not disclosed [1].
Santos, who represented New York’s 3rd Congressional District from January to December 2023 before being expelled from Congress during a federal investigation, pleaded guilty in 2024 to federal charges including wire fraud, identity theft, and money laundering [1]. He was sentenced to 87 months in prison and ordered to pay nearly $374,000 in restitution and over $200,000 in forfeiture, but his sentence was commuted by President Trump last year [1].
The investigation into Santos’ betting activity on Kalshi and the potential for insider trading could have implications for regulatory scrutiny of prediction markets and the conduct of public figures engaging in such platforms [1].
CONCLUSION
George Santos’ betting activity on Kalshi has drawn the attention of federal authorities, with an investigation underway into possible insider trading. The case highlights regulatory concerns around prediction markets and the actions of high-profile individuals. Market participants may face increased scrutiny as the investigation develops.