Federal regulators have launched an investigation into former U.S. Representative George Santos for possible insider trading on the prediction market Kalshi, according to sources familiar with the matter. The probe centers on transactions Santos allegedly conducted on the platform, which allows users to trade contracts on the outcomes of real-world events.
Santos, a Republican who represented New York’s 3rd congressional district, was expelled from the House of Representatives in December 2023. His expulsion followed a damning ethics report that found he had misused campaign funds and filed false financial disclosures. His short tenure was marred by numerous scandals and fabrications about his background and resume.
The investigation reportedly examines whether Santos used non-public information to make profitable trades on Kalshi. The platform is regulated by the Commodity Futures Trading Commission (CFTC) and offers markets on topics ranging from economic data releases to political outcomes.
This latest legal scrutiny adds to the growing list of challenges facing the former congressman. Santos is already facing a 23-count federal indictment in New York. The charges include wire fraud, money laundering, theft of public funds, and making materially false statements to the House of Representatives.
Santos has consistently denied all allegations against him. He has pleaded not guilty to the federal charges and has characterized the various investigations as politically motivated. His legal team has not yet issued a public comment regarding the newly reported insider trading probe.
The CFTC, which oversees Kalshi, typically does not comment on ongoing investigations. The development highlights the growing regulatory attention being paid to prediction markets, which have expanded in scope and popularity in recent years.
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