Federal authorities have initiated an investigation into former Congressman George Santos over allegations of insider trading linked to the prediction market platform Kalshi. The inquiry focuses on bets placed by Santos in February, which appear connected to his attendance at President Donald Trump's State of the Union address. Kalshi itself alerted regulators after noticing these unusual wagers.
This investigation adds to the ongoing scrutiny of Santos’s financial conduct following his departure from Congress. Federal officials are examining the details of his activity on the platform to determine if any laws were violated. The case highlights increased regulatory attention on trading behavior in emerging prediction markets.