George Santos, a former Republican Representative, has denied allegations of insider trading amid reports that a prediction market flagged his activity to federal authorities. The online platform Kalshi reported Santos to federal prosecutors after he stated he would attend President Donald Trump’s February State of the Union address, then allegedly placed a bet against him appearing.
Background and Allegations
Santos, who represented New York’s 3rd Congressional District, mentioned that he was informed of the investigation through a report by NPR. His legal team is in contact with officials to gain clarity on the matter. Santos characterized the accusations as “preposterous” and expressed his willingness to cooperate fully, advising media to hold back from contacting him at this stage.
The scrutiny arose after Kalshi flagged his trading activity over potential insider trading concerns. The platform referred the case to both the Department of Justice (DOJ) and the Commodity Futures Trading Commission. The focus is on whether Santos used nonpublic or self-generated information to affect the market.
Details of the Allegations
The claims suggest that Santos publicly declared his attendance at Trump’s State of the Union address while allegedly betting against it. A source told the Associated Press that the trades made before the speech conflicted with his public statements, thus, raising suspicion. Investigators are trying to ascertain if Santos’ public declarations manipulated market odds for personal gain.
George Santos’ Statement
Santos wrote on X, “To the 100’s of reporters calling me through the night. Stop! My legal team and I were made aware by a report from NPR yesterday that the DOJ might be looking into me. So now my legal team is in contact with the DOJ to see what is going on. I will comment further when appropriate and clarify everything accordingly while being mindful and respectful of any process that might be underway. The bases of the accusation is preposterous and I look forward to supplying any information asked of me to any agency that inquires, till then media please do not inquire.”
Past Legal Issues
Santos faced legal trouble in 2023, arrested on federal charges including wire fraud, identity theft, and financial misconduct connected to his congressional campaigns. These accusations, involving fabrications and misuse of funds, led to his removal from the U.S. House of Representatives.
In 2024, Santos pleaded guilty, resulting in a sentence of over seven years in prison. His case highlighted a substantial fall as his falsified résumé and personal claims were exposed.
Trump’s Clemency Decision
Although Santos was not pardoned, Donald Trump granted him clemency in October 2025. This early release after serving part of his sentence drew criticism, especially given Santos’ expulsion and conviction. Trump’s rationale was that Santos’ punishment had been excessive, calling him a “rogue.” This clemency enabled Santos to reenter public life and engage in political commentary.
This article includes reporting by the Associated Press.