The Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) have launched inquiries into former congressman George Santos over allegations of insider trading related to the betting platform Kalshi. The investigation centers on claims that Santos manipulated betting odds by falsely suggesting he would attend President Trump's State of the Union address in February.
In a video posted on social media, Santos proclaimed he would be present at the event, causing a surge in betting odds on Kalshi, which attracted speculation from betters. However, he ultimately did not attend and instead watched the address from an airport. Santos reportedly made substantial profits by betting against his own attendance, amounting to tens of thousands of dollars.
Kalshi has since frozen Santos' account and notified the DOJ and CFTC about the suspicious trades. Despite the ongoing investigation, Santos denied any knowledge of the inquiry and downplayed his involvement with Kalshi, referencing a personal connection to cofounder Luana Lopes Lara, although reports suggest he does not know her.