Former US Congressman George Santos is reportedly under federal investigation over suspicious trading activity on prediction market platform Kalshi, adding another chapter to the controversial politician’s legal troubles.
According to reports, the investigation was triggered after Kalshi flagged trading linked to Santos and referred the matter to the US Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC). Authorities are examining whether Santos may have used non-public information or influence over an event outcome to profit from trades on the platform.
The case centers on a market related to Santos’ attendance at President Donald Trump’s State of the Union address earlier this year. Santos publicly indicated that he planned to attend the event, but later failed to appear. Investigators are reportedly reviewing allegations that he placed trades predicting his own absence while publicly suggesting the opposite outcome, potentially affecting market prices.
Kalshi’s rules prohibit users from participating in markets where they can directly influence the outcome. After identifying what it considered suspicious activity, the company reportedly froze Santos’ account and notified regulators. The platform has increased monitoring efforts amid growing concerns about insider trading and market manipulation in prediction markets.
Neither the DOJ nor the CFTC has publicly commented on the investigation. Santos has also not provided a detailed public response to the allegations. Reports suggest that any profits linked to the trades could amount to tens of thousands of dollars, although authorities have not confirmed specific figures.
The probe comes as prediction markets face greater regulatory attention in the United States. Lawmakers and regulators have recently raised concerns about traders potentially exploiting privileged information in contracts tied to politics, government actions, and other sensitive events.