The Department of Justice has reportedly opened an investigation into George Santos for alleged insider trading on the prediction market Kalshi. The scheme is said to involve Santos manipulating odds on a bet concerning his attendance at Donald Trump’s State of the Union address in February.
Details of the Alleged Scheme
According to sources with direct knowledge of his trades, Santos posted on X confirming his attendance, causing odds to spike. He then reversed his statement, claiming he would watch from an airport, which led to a tumble in the odds. Prior to his announcement that he would not attend, Santos allegedly placed bets on Kalshi predicting his non-attendance.
Regulatory Response
Kalshi detected these suspicious trades and subsequently referred the matter to both the DOJ and the Commodity Futures Trading Commission. This has prompted separate investigations into the former congressman's activities.
The investigation adds to Santos’s legal troubles, as he was previously sentenced to 87 months in prison for unrelated fraud charges.
