DOJ Looking Into Former Rep. Santos Alleged Insider Trading on Kalshi
Posted on: June 2, 2026, 06:33h.
Last updated on: June 2, 2026, 06:33h.
- The former New York congressman was recently freed from prison by President Trump
- The Justice Department is investigating Santos for possibly having manipulated a market on Kalshi
- Santos was previously forced to resign from Congress and sentenced to 87 months in prison
The often colorful life of former Rep. George Santos is taking another unusual turn amid reports the Department of Justice (DOJ) is investigating him for allegedly engaging in insider trading on the prediction market Kalshi.
NPR broke the news earlier today, citing an unidentified source that said Kalshi was aware of the former New York congressman’s attempted chicanery and that the yes/no exchange referred the case to DOJ and the Commodities Futures Trading Commission (CFTC), the federal agency overseeing prediction markets.
At issue is Santos’s potential manipulation of a market involving his attendance (or not) at State of the Union address in February — just months after President Trump commuted the New York Republican’s federal prison sentence. Prior to the speech, Santos posted a video on X saying he’d be attending the speech, affecting prices on Kalshi event contracts tied to potential State of the Union attendees.
Santos would later post another video in which he’s at an airport, telling followers he missed the speech. Behind the scenes, he allegedly bought “no” contracts on Kalshi, reports NPR, perhaps capitalizing on not being at the State of the Union. That could constitute insider trading.
Kalshi Taking a Hard Stance Against Insider Trading
Kalshi reportedly spotted Santos’s nefarious transactions, freezing his account and referring the matter to the CFTC and DOJ.
Perhaps it’s just a coincidence, but the State of the Union was in February and in March, Kalshi announced a new series of insider trading protocols aimed at preventing athletes and politicians from trading in markets in which they can affect outcomes.
Kalshi has frequently taken action against political candidates who allegedly used the platform to trade on non-public information related to their campaigns. In April, the company announced account suspensions of three candidates — two Democrats and a Republican — over insider trading issues. That was after Kalshi fined a California Republican gubernatorial candidate for betting on himself in 2025.
In typical Santos fashion, the former congressman told NPR he couldn’t confirm or deny that he had a Kalshi account, but he told the media outlet that he’d call Kalshi co-founder Luana Lopes Lara and look into the matter. He framed that as he and Lara having an existing friendship because both are of Brazilian heritage, but the NPR source said Lara and Santos don’t know each other.
Santos Loves to Spin a Good Yarn
Santos was elected to represent New York’s third congressional district in 2022. He lasted just a year in Congress after “cracks” in his resume, including falsehoods regarding his status as college athlete and time working on Wall Street, were exposed.
But there was much more. In April 2025, he was sentenced to 87 months in federal prison on charges of wire fraud and aggravated identity theft. He was also ordered to make nearly $600,000 in restitution to victims of his financial crimes.
“George Santos spent his brief career in public service conning his donors and constituents until the deceit caught up to him and he was exposed as an opportunist and a fraud,” said Nassau County District Attorney Anne Donnelly following the April 2025 sentencing.
Santos was released from prison in October so it’s possible he was up to his old tricks just seven months after getting out.
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