Federal Investigation into Former Congressman George Santos for Potential Insider Trading

Federal authorities are currently investigating allegations that former Representative George Santos engaged in insider trading. The inquiry pertains to whether Santos bet on his attendance at a State of the Union address by President Trump in late February.

Santos made a public announcement via social media just before the speech, stating his intention to attend. His presence at the event was a significant topic among bettors on the prediction market Kalshi, with wagers being placed on who would be in the gallery.

In a video posted on X, Santos teased, “I’m gonna be in the gallery.” However, he ultimately did not attend the speech. Around the time of the event, Kalshi identified that Santos had bet against his attendance, as revealed by sources who requested anonymity due to the ongoing investigation.

Kalshi referred the incident to the Justice Department and the Commodity Futures Trading Commission (CFTC), the latter being a financial regulator responsible for overseeing prediction markets. The CFTC is actively investigating Santos, though it remains unclear if the Justice Department has launched its own probe.

Santos has not yet responded to requests for comment regarding the investigation. The case highlights challenges for the Trump administration to enforce regulations against insider trading and other misconduct in the rapidly growing and profitable prediction markets.

Kalshi has connections to President Trump’s business interests. Early last year, Donald Trump Jr., the president’s eldest son, joined the company as a “strategic advisor.”