One source told The Associated Press that prediction market Kalshi detected Santos’ trades ahead of Trump’s State of the Union address.
NEW YORK – Prediction markets report that U.S. Rep. George Santos He disclosed the information to federal prosecutors after he bragged that he would attend President Donald Trump’s State of the Union address and then bet he wouldn’t attend, according to a person familiar with the matter.
KarshiThe online prediction market Santos referred Santos to the Justice Department after discovering suspicious transactions made before Trump’s February 24 speech, the person said. The person spoke on condition of anonymity because they were not authorized to discuss the matter publicly.
Kalshi also reported the trades to the Commodity Futures Trading Commission, a federal regulator that has vowed to crack down on insider trading in prediction markets.
The Justice Department and the CFTC did not immediately respond to inquiries from The Associated Press on Tuesday.
Santos also did not respond to text messages or phone calls.
Referral is NPR first reported. Santos told NPR he was unaware of the status of the investigation. He declined to say whether he had a Kalshi account.
“I’m not going to say yes and I’m not going to say no,” Santos told NPR.
this convicted former congressman His intention to attend the State of the Union, which has been discussed several times, comes just four months after he received clemency from Trump in a fraud case that led to his expulsion from the U.S. House of Representatives.
On the eve of Trump’s speech, Kalshey put the chance of Santos’ attendance at close to 75%.
Then, minutes into his speech, Santos Posted on X He was ambushed at the airport. Immediately, some social media users accused him of another plan.
“Santos talked to his accountant and told him to open a Kalshi account and bet all his money on NO,” said one user wrotealongside a meme of Al Pacino counting money in the movie Scarface.
March, Santos Resolved Complaints on his podcast.
“I guess people lost money,” he said. “Some people are making unexpected amounts of money. It shows you how fragile these markets are.”
Santos was sentenced to seven years in prison after he won office as a Republican by creating a false image of a Wall Street dealmaker. Pleaded guilty to fraud and identity theft in 2024.
Trump ordered Santos’ release after serving just 84 days in prison. Trump called Santos a “gangster” but said he did not deserve a harsh sentence and should be praised for voting Republican.
Prediction markets, including Kalshi and its main competitor Polymarket, have strict review As their businesses expand, some lawmakers are urging the platforms to do more to guard against insider trading.
Both companies said they are reporting suspicious transactions to federal regulators. Some investigations have resulted in criminal charges. In April, a soldier took part in the military operation to capture Venezuelan President Nicolás Maduro. Accused of using confidential information Predicting the date of his arrest in Polymarket won over $400,000.
In April, the Senate approved a bipartisan resolution blocking its members from using prediction market.
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