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Federal regulators are investigating disgraced former Congressman George Santos for possible insider trading on the prediction market Kalshi, sources familiar with the matter told ABC News.
Kalshi flagged a series of wagers Santos made in February tied to his attendance at President Donald Trump’s State of the Union speech, the sources said.
Kalshi referred the suspicious trades to its regulator, the Commodity Futures Trading Commission, and to the Justice Department, the sources said.
According to sources, Santos placed bets on Kalshi that he would not attend the 2026 State of the Union address. But on Feb. 23, Santos posted, “I’ll be in the gallery” for the president’s speech. The next day, the night of the speech, he posted, “Watching SOTU from an airport tv was not part of the plan! FML.”
The CFTC’s enforcement division is now investigating and will decide whether Santos made tens of thousands of dollars by deceiving the public and affecting the odds, the sources said.
George Santos, former Representative from New York, exits federal court in Central Islip, New York, US, on Friday, April 25, 2025. Former US Representative George Santos, a onetime rising Republican star who falsely claimed to have worked for Goldman Sachs Group Inc. before running for Congress, was ordered to serve seven years and three months in prison for stealing campaign funds.
Bloomberg via Getty Images
Kalshi, the Justice Department and CFTC declined to comment when asked by ABC News. NPR was first to report the suspicious trades by Santos.
When asked for a statement by NPR about the insider trading probe, Santos reportedly said, “Well, that’s news to me.” Asked if he had a Kalshi account, Santos told NPR, “I’m not saying yes, I’m not saying no.”
The New York Republican, whose campaign for office was built on lies about his resume, pleaded guilty to fraud and aggravated identity theft. He served four months of a seven-year sentence before receiving a commutation from Trump.
Sources did not indicate whether the Justice Department began a criminal case, though federal prosecutors in New York have brought two insider trading cases against other individuals involving Kalshi’s rival prediction market, Polymarket.
In one case, a special forces soldier who bet on the raid that ousted Nicholas Maduro from Venezuela pleaded not guilty. In the second case, a Google software engineer who allegedly made Google-related bets based on inside information has not yet entered a plea.
