From Dispatch Room
United States federal regulators are investigating former Congressman George Santos over alleged insider trading activity linked to prediction market platform Kalshi, according to reports from Reuters and other U.S. media outlets. ([Reuters][1])
The investigation reportedly began after Kalshi flagged suspicious trading activity connected to Santos’ account and referred the matter to the U.S. Department of Justice and the Commodity Futures Trading Commission (CFTC). ([Reuters][1])
According to sources familiar with the probe, the controversy centres on bets allegedly placed by Santos concerning whether he would attend President Donald Trump’s State of the Union address earlier this year. ([Reuters][1])
Reports indicated that Santos publicly posted online suggesting he would attend the event, while traders on Kalshi were actively wagering on his appearance. However, investigators are now examining claims that Santos later placed bets against his own attendance before eventually failing to appear at the address. ([Reuters][1])
Sources said the market value of the contracts shifted significantly following Santos’ social media posts and subsequent absence from the event. Kalshi reportedly froze the account and alerted regulators after identifying what it considered potentially suspicious activity. ([Reuters][1])
The Department of Justice has not officially commented on the investigation, while Santos has reportedly denied knowledge of any active probe. ([northernpublicradio.org][2])
The case adds to Santos’ long list of legal and political controversies. The former New York congressman was expelled from the U.S. House of Representatives following fraud and identity theft scandals and later faced criminal prosecution linked to campaign finance and financial misconduct. ([Wikipedia][3])
President Donald Trump later commuted Santos’ prison sentence after he had served part of his jail term. ([Reuters][1])
The investigation also places renewed attention on prediction market platforms such as Kalshi and Polymarket, which have come under increasing scrutiny from regulators amid concerns about insider trading, political manipulation, and the use of privileged information in betting markets. ([Reuters][1])
In recent months, lawmakers in Washington have proposed tighter restrictions on prediction market trading involving government actions, military operations, and politically sensitive events. ([Reuters][1])
— Newspot Nigeria
