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NPR Topics: News1 min read
George Santos reportedly investigated by DoJ over suspicious Kalshi bets
TL;DR
Federal authorities are investigating George Santos for potential insider trading linked to bets on his attendance at the State of the Union address. The investigation involves the prediction market Kalshi, which flagged the trade to the Commodity Futures Trading Commission.
Key points
- George Santos is under investigation by federal authorities.
- The investigation concerns insider trading related to prediction market bets.
- Santos placed a bet on his attendance at the State of the Union address.
- Kalshi flagged the trade to the Commodity Futures Trading Commission.
- The Department of Justice is involved in the investigation.
Mentioned in this story
George SantosKalshiDepartment of JusticeCommodity Futures Trading Commission
Federal authorities are investigating whether George Santos, the disgraced former Republican congressman from New York, engaged in insider trading by betting on a prediction market on his own attendance to the State of the Union address, multiple news outlets reported on Tuesday.
Santos allegedly placed a bet on Kalshi, a popular online prediction market, over whether he would be in attendance at Trump’s State of the Union address in February, according to NPR, which first reported on the investigation citing anonymous sources.
Santos had shared his intention to be at the event on social media, before telling his followers that travel woes had nixed the plan.
Kalshi, whose representatives also did not reply to a request for comment, flagged the trade to the Commodity Futures Trading Commission (CFTC), according to the Associated Press.
Anonymous sources confirmed to several other news outlets that the Department of Justice is investigating the matter. The DoJ and the CFTC did not immediately respond to a request for comment.
Reports of the federal investigation comes as Kalshi and Polymarket have faced scrutiny from lawmakers over concerns about insider trading.
Questions have swirled about well-timed, profitable online bets on the Iran war. In April, Kalshi fined three congressional candidates for betting on their own races. That same month, a US soldier involved in the capture of Venezuelan president Nicolás Maduro was taken into custody over bets he made about the deposed head of state on Polymarket.
Asked by NPR whether he had a Kalshi account, Santos said: “I’m not saying yes. I’m not saying no.”
“I hate to disappoint but I don’t engage with rag reporting anymore…” Santos wrote on X, appearing to reference the reports. “Business as usual on my end haters!” he said.
Santos had a short stint in Congress, representing New York’s third district. He was expelled in December 2023 after a House ethics committee report detailing how he used campaign funds for purchases including travel, cosmetic treatment and luxury goods.
Q&A
What is George Santos being investigated for?
George Santos is being investigated for potential insider trading related to betting on his own attendance at the State of the Union address.
How did Kalshi become involved in the George Santos investigation?
Kalshi flagged Santos's trade to the Commodity Futures Trading Commission after he placed a bet on whether he would attend the State of the Union address.
What actions did George Santos take before the State of the Union address?
Before the State of the Union address, George Santos announced on social media that he intended to attend but later claimed travel issues prevented him from going.
