DOJ Investigates Former Rep. George Santos Over Kalshi Bets on His State of the Union Attendance

Federal prosecutors have opened an investigation into whether former Rep. George Santos engaged in insider trading by placing bets on the prediction market Kalshi about his attendance at President Trump’s State of the Union address. The inquiry focuses on wagers Santos allegedly made on whether he would appear at the February address to Congress.

Multiple outlets reported the probe on Tuesday. Santos placed a bet that he would not attend the address, according to people familiar with the matter cited by NPR. Kalshi flagged the activity to regulators after the bets were placed.

Santos represented New York’s 3rd congressional district until his expulsion from the House in December 2023. He is currently serving a prison sentence in New Jersey after pleading guilty to fraud and identity theft charges. The current investigation is separate from his prior criminal case and centers on whether he used non-public information when trading on the prediction platform.

The Department of Justice launched an investigation into George Santos after he allegedly bet on his own appearance at President Trump’s State of the Union address in February. Santos allegedly placed a bet on Kalshi that he wouldn’t attend Trump’s address to Congress, sources familiar with the trades told NPR. The day before the Feb.

He wound up skipping the entire event. During the president’s speech, Santos shared another post on X complaining about his apparent absenteeism: “Watching SOTU from an airport tv was not part of the plan! ” The Kalshi market odds on the likelihood of Santos’ eleventh-hour appearance plummeted moments after Santos posted the update.

Kalshi flagged Santos’ trades, froze his account, and referred the case to the Commodity Futures Trading Commission and the DOJ, a source told the outlet. ” “I’m not saying yes, I’m not saying no,” Santos said when asked if he had a Kalshi account. Santos claimed that he personally knows Kalshi co-founder Luana Lopes Lara.

Santos was released from FCI Fairton, a medium security prison in Fairfield Township, NJ, last October after President Trump commuted his 87-month prison sentence for wire fraud and aggravated identity theft. He had served less than three months in the slammer before he was freed.