George Santos Denies Insider Trading Allegations Amid Investigation

Former Republican Representative George Santos has denied allegations of insider trading after being flagged by a prediction market to federal authorities. The report focused on his actions surrounding a potential appearance at President Donald Trump’s February State of the Union address.

Santos’ Response to Allegations

Kalshi, an online prediction market, reported Santos to federal prosecutors after he claimed publicly that he would attend Trump’s address, but allegedly bet against his attendance. Santos, who once represented New York’s 3rd Congressional District, stated he learned from an NPR report that the Department of Justice (DOJ) might be investigating him. His legal team is currently liaising with officials to comprehend the situation. Santos dismissed the accusations as “preposterous” and stated he would cooperate with any inquiries, but asked media outlets to avoid contacting him further as the situation develops.

Reasons for Investigation

Santos faces examination due to Kalshi’s report, which highlighted concerns about possible insider trading. The platform flagged suspicious betting activity related to Santos’ attendance at Trump’s State of the Union speech on February 24, 2026. Federal agencies, including the DOJ and the Commodity Futures Trading Commission, are investigating whether Santos manipulated the market using nonpublic or self-generated information. This case aligns with a wave of increased scrutiny on prediction markets by lawmakers and regulators worried about potential manipulation.

Allegations Details

The central accusations claim that Santos stated publicly he would attend Trump’s address while allegedly placing bets against his appearance. This contradiction raised suspicion according to a source familiar with the investigation. Authorities are exploring whether his misleading statements influenced market odds in a manner beneficial to his trades. This incident has heightened criticism that prediction markets could be exploited by those with privileged knowledge.

Santos’ Public Statement

In a message posted on X, Santos wrote, “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.”

Details on George Santos’ Arrest and Clemency

Santos was arrested in 2023 on federal charges including wire fraud, identity theft, and financial misconduct in relation to his congressional campaigns. He faced allegations of false representations about his background and misuse of donor funds. These allegations resulted in his expulsion from the U.S. House of Representatives.

In 2024, Santos pleaded guilty and was sentenced to over seven years in prison. His sentencing followed revelations about his false résumé and personal history. In October 2025, Trump granted him clemency, describing him as a “rogue” while deeming the punishment overly harsh. This decision allowed Santos to reengage in public life despite previous high-profile actions against him.

This article includes reporting by the Associated Press.