George Santos Denies Insider Trading Allegations Amid Investigation
Former Republican Representative George Santos has denied allegations of insider trading following reports that a prediction market alerted federal authorities about his activities. On Tuesday, the platform Kalshi informed federal prosecutors after Santos announced his attendance at President Donald Trump’s February State of the Union address, only to allegedly bet against his own appearance.
Santos, who previously served New York’s 3rd Congressional District, stated that he and his legal team first became aware of potential Department of Justice (DOJ) interest through an NPR report. They are now in contact with officials to understand the situation. He labeled the accusations as ‘preposterous’ and expressed his willingness to cooperate with any inquiry, requesting media outlets to avoid contacting him as the matter develops.
Why Is George Santos Being Investigated?
The investigation into Santos began after Kalshi pointed out his trading activity to federal authorities, raising concerns about potential insider trading. Kalshi reported the issue to the DOJ and the Commodity Futures Trading Commission, noting suspicious bets related to Santos’ attendance at Trump’s State of the Union on February 24, 2026.
Regulators are investigating whether Santos used nonpublic or self-generated information to affect the market for personal gain. This scrutiny comes amid increased oversight of prediction markets by legislators and regulators concerned about possible manipulation.
What Do the Allegations Claim?
Allegations suggest Santos declared he would attend Trump’s State of the Union address while reportedly betting against his appearance. A source familiar with the investigation indicated to the Associated Press that these trades were executed before the speech, raising suspicions due to their contradiction of Santos’ public statements.
Investigators are assessing whether Santos’ comments influenced market odds favorably for his trades. This incident has heightened criticism of prediction markets and their susceptibility to exploitation by participants with privileged or self-generated information.
Read George Santos’ Full Statement
On Wednesday, Santos posted on X, ‘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.’
When Was George Santos Arrested?
In 2023, Santos faced arrest on federal charges, including wire fraud, identity theft, and financial misconduct related to his congressional campaigns. Prosecutors accused him of misrepresenting his background and misusing donor funds. These accusations led to his expulsion from the U.S. House of Representatives.
In 2024, he pleaded guilty and received a sentence exceeding seven years in prison. The case marked a significant downfall for the New York Republican, revealing numerous falsehoods in his résumé and personal history after entering office.
Was George Santos Pardoned by Donald Trump?
Santos did not receive a formal pardon following his 2024 sentencing. However, in October 2025, Trump granted him clemency after he served a relatively brief portion of his sentence. Trump referred to him as a ‘rogue’ but deemed his punishment too severe.
The clemency announcement attracted criticism due to Santos’ high-profile expulsion and criminal conviction. His release allowed a return to public life, including participation in political activities and commentary.
This article includes reporting by the Associated Press.