DOJ investigating George Santos for alleged insider trading on Kalshi: Report
The U.S. Department of Justice is investigating former New York Republican Rep. george Santos over alleged insider trading involving the prediction market Kalshi. NPR reports that Santos allegedly placed bets about whether he would attend President Donald Trump’s State of the Union, after publicly saying he planned to be there-information that led Kalshi users to make high-value wagers.
Afterward, Santos posted that he was watching from an airport, which changed the odds. NPR says Santos had already placed bets indicating he would not attend and profited tens of thousands of dollars, though the exact figure isn’t public. Kalshi reportedly flagged the trading, froze his account, and referred the matter to the Commodity Futures Trading Commission and the Department of Justice, both of which opened investigations.
santos did not confirm whether he had a Kalshi account and said he wasn’t aware of any inquiry. The case adds to ongoing legal and political scrutiny of Santos, whose career collapsed after findings about fabricated parts of his background and federal fraud charges. It also comes amid broader regulatory concerns about whether rapidly growing prediction markets like Kalshi and Polymarket can be used to exploit insider information or manipulate outcomes.
The Department of Justice has opened an investigation into former New York Republican Rep. George Santos for allegedly engaging in insider trading on the prediction market Kalshi, according to reporting by NPR.
The investigation involves bets allegedly placed by Santos regarding his attendance at President Donald Trump’s State of the Union address when Kalshi users were placing bets on who was going to attend the president’s speech.
Recommended Stories
Santos had posted a video to social media the day prior to the State of the Union in which he said he would be in attendance, which prompted users to place high-value bets that the former congressman would attend.
“I’m going to be there for the State of Union in the gallery, guys,” Santos said in an X video posted Feb. 23, one day before the event.
However, Santos later posted that he was watching Trump’s address from an airport, causing the Kalshi odds to fall.
“Watching SOTU from an airport tv was not part of the plan! FML,” Santos said in an X post.
According to NPR’s reporting, Santos had already placed bets that he would not attend and profited tens of thousands of dollars from the trade, though the exact amount has not been disclosed.
Kalshi flagged Santos’s trades and froze his account, subsequently referring the case to the Commodity Futures Trading Commission and the Department of Justice, which both opened investigations.
Santos declined to say whether or not he had a Kalshi account and said he was not aware of an investigation into his trades.
The reported investigation marks the latest legal scrutiny facing the former New York Republican, whose political career unraveled amid revelations that he fabricated portions of his biography and faced multiple federal fraud charges.
Santos was expelled from the House in 2023 and later pleaded guilty to federal charges, including wire fraud and aggravated identity theft. He began serving a prison sentence in 2025 before receiving a commutation from Trump later that year.
The case also added to growing questions surrounding prediction markets such as Kalshi and Polymarket, which have expanded rapidly by allowing users to bet on political, economic, and geopolitical events. Regulators and lawmakers have increasingly debated whether such platforms are vulnerable to insider information and market manipulation.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
