DOJ and CFTC Probe George Santos Over Alleged Insider Trading on Kalshi

Federal authorities, including the Department of Justice and the Commodity Futures Trading Commission, have opened an investigation into former New York Representative George Santos over alleged insider trading on the prediction market Kalshi. The probe centers on wagers Santos reportedly placed in February betting against his own attendance at President Donald Trump’s State of the Union address. After Santos posted social media videos confirming his presence in the gallery, he later claimed he watched the speech from an airport, a reversal that allegedly allowed him to profit tens of thousands of dollars. Kalshi flagged the suspicious activity, froze his account, and referred the matter to regulators. Santos has offered noncommittal responses to reporters, later acknowledging a possible DOJ review while calling the accusations preposterous.

The investigation adds to ongoing legal scrutiny for Santos, who was expelled from Congress in 2023, pleaded guilty to federal fraud and identity theft, and served a brief prison sentence before receiving a presidential commutation. It also intensifies regulatory and legislative debates over the rapid expansion of online prediction markets, as authorities examine whether platforms like Kalshi and Polymarket are vulnerable to market manipulation and insider information. Regulators are now assessing whether the trades violate securities and commodities laws, with outcomes potentially shaping future oversight of speculative political betting.