The Department of Justice and the Commodity Futures Trading Commission have launched investigations into former New York Representative George Santos regarding allegations of insider trading tied to bets he reportedly made on the prediction platform Kalshi — including wagers connected to his own political and legal circumstances.
According to individuals familiar with the matter, the platform flagged suspicious activity after identifying an account belonging to Santos. Kalshi subsequently froze the account and referred the findings to federal prosecutors and regulators.
The inquiry centers on claims that Santos may have used non-public or privileged information to place trades on the event-based market site, where users can buy and sell contracts based on the outcomes of real-world events. Investigators are also examining whether he improperly profited by betting on himself, a move that has raised questions about potential conflicts of interest and market manipulation.
Santos issued a statement dismissing the allegations as “preposterous” and expressed a willingness to cooperate with official inquiries. When initially questioned by reporters regarding the matter, Santos stated, “Well, that’s news to me,” and when asked to confirm if he maintained a Kalshi account, he responded, “I’m not saying yes, I’m not saying no.”
Kalshi, which operates as a federally regulated exchange for event contracts, has become increasingly scrutinized as regulators and lawmakers debate how prediction markets should be policed under U.S. financial laws. The platform allows users to take positions on outcomes ranging from elections to legal proceedings, though the Santos-related trades have drawn particular attention due to his public profile and ongoing legal controversies.
Santos, who was expelled from Congress amid ethics violations and false statements about his background, has faced a series of legal and financial challenges since leaving office. The latest investigation adds to that list, though no charges have been filed in connection with the Kalshi trading activity, according to the reports.
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