Former Rep. Santos allegedly bet against himself on prediction market
June 3 (UPI) -- Former New York representative George Santos is being investigated for insider trading after allegedly betting on himself on prediction market site Kalshi.
Bettors on the site could bet on who would attend the State of the Union address in February. Santos said on X that he would be there, in the gallery, then later didn't show up.
Kalshi then detected that Santos had bet against himself attending, a person familiar with the matter told The New York Times. Kalshi then sent the matter to the Department of Justice and the Commodity Futures Trading Commission, which regulates prediction markets. Another source told The Times that the CFTC is investigating Santos, but it's not clear if the Justice Department is opening a case.
Santos, a Republican who ran in 2024 as an independent, served in the House of Representatives for less than one year and was sentenced to more than seven years in prison for pleading guilty to wire fraud and aggravated identity theft. He served about three months until President Donald Trumpcommuted his sentence in October.
Santos was also known for lying about his employment history and education, and gave false information about his family.
Prediction markets like Kalshi and Polymarket have come under increased scrutiny, especially after Gannon Ken Van Dyke allegedly won more than $400,000 through bets he made on Polymarket about the future of Venezuela, former President Nicolas Maduro and U.S. military intervention. He was allegedly part of the planning of the operation to kidnap Maduro.
In February, an Israeli court indicted a military reservist and a civilian for using classified information while wagering on military operations, defense officials said.
Kalshi also has ties to Trump's business interests. The company appointed Donald Trump Jr., the president's son, to a position of "strategic advisor" for the firm.
The Times found last month in an investigation that the CFTC under the Trump administration has often ruled in favor of prediction markets. Two career officials who spoke up were banned from the office and put on investigative leave last year.
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This story was originally published June 3, 2026 at 7:48 AM.