Former Republican Representative George Santos denied the allegations of insider trading that arose after reports indicated a prediction market had alerted federal authorities to his activities. On Tuesday, Kalshi reported Santos to federal prosecutors following his announcement that he would attend President Donald Trump’s State of the Union address in February, then allegedly betting against his own attendance.
Santos, who once represented New York’s 3rd Congressional District, shared that he and his legal team learned through an NPR report about a potential Department of Justice (DOJ) investigation. They are now communicating with officials to gather more information on the situation. Santos described the accusations as “preposterous” and expressed willingness to cooperate with any investigation, while requesting that media outlets refrain from contacting him as events develop.
Why Is George Santos Being Investigated?
The scrutiny on Santos arose after Kalshi, an online platform, flagged his trading activity to federal authorities. This prompted concerns over potential insider trading. Kalshi brought the matter to the DOJ and the Commodity Futures Trading Commission after identifying suspicious bets linked to Santos’ presence at Trump’s State of the Union on February 24, 2026. Federal regulators are investigating whether Santos employed nonpublic or self-created information to alter the market to his advantage. The case highlights growing concerns about prediction markets’ susceptibility to manipulation.
What Do the Allegations Claim?
The allegations focus on claims that Santos publicly stated he would attend the State of the Union address, while allegedly placing bets indicating he would not be there. A source familiar with the investigation informed the Associated Press that these trades occurred before the speech, stirring concern due to conflicting public statements. Investigators are assessing whether Santos’ statements potentially impacted market odds, benefitting his trades. This incident has intensified criticisms that prediction markets can be abused by individuals with privileged information.
Read George Santos’ Full Statement
Santos wrote on X, “To the 100’s of reporters calling me through the night. Stop! My legal team and I were made aware by a report from NPR yesterday that the DOJ might be looking into me. So now my legal team is in contact with the DOJ to see what is going on. I will comment further when appropriate and clarify everything accordingly while being mindful and respectful of any process that might be underway. The bases of the accusation is preposterous and I look forward to supplying any information asked of me to any agency that inquires, till then media please do not inquire.”
When Was George Santos Arrested?
Santos was arrested in 2023 on federal charges, including wire fraud, identity theft, and financial misconduct related to his congressional campaigns. Prosecutors alleged he had fabricated parts of his background and misused donor funds. These accusations ultimately led to his expulsion from the U.S. House of Representatives. He later pleaded guilty in 2024 and received a sentence exceeding seven years in prison. This marked a significant downfall for the New York Republican, whose falsified résumé and personal history were exposed after he assumed office.
Was George Santos Pardoned by Donald Trump?
Santos was not formally pardoned following his 2024 sentencing. However, Trump granted him clemency in October 2025. Trump ordered his release after Santos served a shorter portion of his sentence, describing him as a “rogue” but asserting that the punishment had been excessive. The clemency decision faced criticism at the time, given Santos’ prominent expulsion from Congress and criminal conviction. His release enabled him to return to public life, involving commentary and political endeavors.
Reporting by the Associated Press contributed to this article.
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