Insider trading investigation launched into former Rep. George Santos: Sources
Federal regulators are currently looking into former Congressman George Santos for potential insider trading activities on the prediction market known as Kalshi, as reported by sources familiar with the situation to ABC News.
The investigation was triggered by a series of suspicious wagers that Santos placed in February, specifically related to his attendance at President Donald Trump’s State of the Union address, according to sources. Kalshi, the prediction market platform, flagged these trades and promptly reported them to the Commodity Futures Trading Commission (CFTC) and the Justice Department for further review.
Sources revealed that Santos had placed bets on Kalshi indicating that he would not be present at the 2026 State of the Union speech. However, contradicting his wagers, Santos later posted on social media that he would indeed be in attendance at the event. This discrepancy raised concerns about potential insider trading activities and manipulation of odds on the platform.
The CFTC’s enforcement division is now actively investigating Santos to determine whether he illicitly profited from these trades by deceiving the public and influencing betting odds, potentially earning tens of thousands of dollars in the process.
When approached for comment, both Kalshi and the regulatory authorities declined to provide any statements regarding the ongoing investigation. NPR initially reported on the suspicious trading activities linked to Santos.
In response to inquiries from NPR regarding the insider trading probe, Santos expressed surprise, stating, “Well, that’s news to me.” When asked about his involvement with Kalshi, Santos neither confirmed nor denied having an account on the platform.
Santos, a former New York Republican Congressman, previously faced legal troubles for fraudulent activities and falsifying his background. He pleaded guilty to charges of fraud and aggravated identity theft, serving a portion of his seven-year sentence before receiving a commutation from President Trump.
While it remains unclear whether the Justice Department has initiated criminal proceedings against Santos, past cases have seen federal prosecutors in New York bring insider trading charges against individuals involved in rival prediction markets, such as Polymarket. Notable cases include a special forces soldier accused of betting on the ousting of Nicholas Maduro in Venezuela and a Google software engineer allegedly making trades based on insider information related to Google.
