DOJ probing George Santos over insider trading after ex-rep’s alleged Kalshi bets: report
The Department of Justice has initiated an investigation into former Congressman George Santos after allegations surfaced that he placed a bet on his own attendance at President Trump’s State of the Union address in February.
Santos, a former New York legislator and New Jersey prison inmate, reportedly wagered on Kalshi that he would not be present at Trump’s congressional address, according to sources familiar with the trades mentioned in a NPR report.
The day before the State of the Union on Feb. 24, Santos posted a video on X confirming his presence in the gallery at the event.
However, Santos did not show up for the event. Instead, during the President’s speech, he posted another message on X expressing his frustration about watching the State of the Union on an airport TV.
“Watching SOTU from an airport TV was not part of the plan! FML,” Santos wrote.
The odds on Santos’ last-minute appearance on the Kalshi market dropped significantly after his post on X.
Kalshi detected Santos’ suspicious trades and suspended his account. The case was then referred to the Commodity Futures Trading Commission and the DOJ, as per a source cited in the report.
The exact amount of Santos’ bet and his potential profits remain undisclosed, but sources claimed that he deceived the public to gain “tens of thousands of dollars.”
When questioned about the investigation, Santos stated that it was news to him and refrained from confirming or denying having a Kalshi account.
Santos made a peculiar claim that he knows Kalshi co-founder Luana Lopes Lara personally, although sources contradicted this assertion.
Regardless, Santos asserted that he would contact Lara to inquire about the investigation.
The New York Post reached out to Santos and the Department of Justice for comments.
Santos was released from FCI Fairton, a medium-security prison in Fairfield Township, NJ, in October after President Trump commuted his 87-month sentence for wire fraud and aggravated identity theft.
Several other politicians have been embroiled in insider trading scandals this year.
In April, Kalshi suspended three congressional candidates – a Democrat, a Republican, and an Independent – who placed bets on their own races.
During the same month, the White House cautioned its staff against insider trading following significant profits made by anonymous traders in Iran War-related transactions.
A group of Republican lawmakers – along with two Democrats – are advocating for a ban on representatives, their families, and staff from engaging in prediction markets and stock trading.
