George Santos reported to prosecutors over suspicious Kalshi trades, AP source says
Summary
George Santos was reported to federal prosecutors for making suspicious bets on Kalshi, an online prediction market. The report came after Santos said he would attend President Donald Trump’s State of the Union address but then bet against his own attendance.Key Facts
- Kalshi, a prediction market, alerted the Department of Justice about suspicious trades made by George Santos before Trump’s February 24 State of the Union speech.
- Santos had publicly said he would attend the event but placed bets suggesting he would not.
- Kalshi also reported the trades to the Commodity Futures Trading Commission (CFTC), which monitors insider trading in such markets.
- Santos was sentenced to over seven years in prison in 2024 for fraud and identity theft but was released after 84 days following clemency from President Trump.
- Santos has not confirmed if he had an account on Kalshi or discussed the investigation.
- Prediction markets like Kalshi and Polymarket are under scrutiny for potential insider trading risks; some traders have faced criminal charges.
- A recent case involved a soldier charged with using secret information to win money on Polymarket by betting on the capture date of Venezuela’s president.
- The U.S. Senate passed a resolution to forbid its members from using prediction markets for trading on insider knowledge.
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