An article summarized by the Associated Press:
A prediction market platform reportedly referred former Congressman George Santos to federal prosecutors after he allegedly bet against his own attendance at President Trump’s February State of the Union address, despite publicly saying he planned to attend. According to reports, Kalshi flagged suspicious trading activity tied to Santos and alerted both the Department of Justice and the Commodity Futures Trading Commission amid growing scrutiny of insider trading risks in prediction markets.
Santos had repeatedly discussed plans to attend the speech, helping push market odds of his appearance to roughly 75%. But during the address, he posted on social media that he had been delayed at the airport, triggering accusations online that he may have profited from betting on his own absence. Santos later commented on the controversy on his podcast, saying some people lost money while others made unexpected gains, but he has declined to confirm whether he held a Kalshi account.
The episode adds to Santos’ long list of legal and political troubles. The former congressman, who was expelled from the House and convicted on fraud and identity theft charges, had previously received clemency from President Trump. Meanwhile, prediction markets such as Kalshi and Polymarket are facing increasing regulatory pressure, with officials and lawmakers pushing for tougher safeguards against insider trading and misuse of nonpublic information.
