Investigation into George Santos for Insider Trading

Federal authorities are currently investigating the actions of former Representative George Santos. The inquiry focuses on possible insider trading related to his betting activities on a prediction market regarding his attendance at President Trump’s State of the Union address. The event took place in late February.

Right before the scheduled address, Mr. Santos made a public announcement on social media stating his intention to attend. This statement stirred considerable interest among online bettors on the prediction market called Kalshi. Participants were actively wagering on the guest list, including Santos’ presence.

Unexpectedly, Mr. Santos did not attend the speech. Concurrent with the event, Kalshi discovered that Mr. Santos had placed bets against his own attendance. This information comes from a source familiar with the investigation, who requested anonymity.

The matter was subsequently referred to the Justice Department and the Commodity Futures Trading Commission (C.F.T.C.), a financial regulatory body overseeing prediction markets. The investigation into Mr. Santos is ongoing.

The C.F.T.C. has confirmed its involvement in the probe, as conveyed by another anonymous informant. It’s unclear if the Justice Department has commenced its separate investigation.

Mr. Santos has not responded to inquiries seeking comment on this matter.

This investigation arises amid increasing demands for the Trump administration to regulate insider trading and abuses within rapidly expanding prediction markets. Kalshi, the prediction market company involved, maintains connections with the president’s business interests. Last year, Donald Trump Jr., the president’s eldest son, was appointed as a strategic advisor to the firm.