Federal authorities are examining whether former Representative George Santos engaged in insider trading. The investigation centers on allegations that he placed bets on a prediction market regarding his attendance at President Trump’s State of the Union address in late February.
Prior to the speech, Mr. Santos publicly announced on social media his intention to attend. Speculation about his presence became a popular topic among bettors on the online platform Kalshi, where wagers were being placed on the event’s attendees.
In a video posted on X, Mr. Santos claimed, “I’m gonna be in the gallery.” However, he ultimately did not attend the speech. Around that time, it was discovered that Mr. Santos had allegedly bet against his own attendance, according to a source acquainted with the investigation.
The matter has been forwarded by Kalshi to the Justice Department and the Commodity Futures Trading Commission (C.F.T.C.), a regulatory body overseeing prediction markets. The C.F.T.C. is now conducting an investigation, although it is unclear if the Justice Department has begun any formal proceedings.
Mr. Santos has not responded to requests for comment regarding the allegations.
The inquiry arises amidst growing efforts by the Trump administration to monitor insider trading and prevent abuses within the prediction market sector. Kalshi is among several prediction market companies linked to the president’s business network. Early last year, Donald Trump Jr. joined Kalshi as a strategic advisor.
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