OAN Staff Jenna Lee
1:39 PM – Wednesday, June 3, 2026
The Department of Justice (DOJ) is reportedly investigating former New York GOP Representative George Santos after a prediction market website reported him to federal authorities for suspected market manipulation.
Santos is accused of using the popular prediction/betting platform, Kalshi, to engage in some form of insider trading ahead of President Donald Trump’s State of the Union (SOTU) address on February 24th this year.
The day before, he notably posted a video to X in relation to the SOTU.
At the time, Kalshi users had already placed millions of dollars worth of wagers on potential high-profile attendees at the SOTU.
While contracts predicting Santos’ attendance opened at 16 cents in January and hovered around 33 cents the day before the event, his posted X video sent prices soaring to 76 cents around 10:00 a.m. ET on the morning of the address.
However, the former congressman failed to show up.
“Watching SOTU from an airport tv was not part of the plan! FML,” Santos later wrote on X.
Additionally, what Santos did not publicly announce, was that he had reportedly already placed heavy wagers on the platform betting against his own appearance, according to three individuals with direct knowledge of his trades. Sources report that Santos intentionally misled the public to drive up the odds, turning a profit of tens of thousands of dollars based on the deception.
After detecting the suspicious trading activity, Kalshi froze Santos’ account and referred the case to the Commodity Futures Trading Commission (CFTC) and the DOJ, both of which have since opened investigations.
When reached out by NPR regarding the insider trading probe, Santos reportedly replied, “Well, that’s news to me. I’m not saying yes, I’m not saying no.” … “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,” he later added.
The CFTC and the DOJ have declined to publicly comment on the status of the ongoing investigations.
Santos had previously been sentenced to seven years in prison after pleading guilty to wire fraud and identity theft in April 2025 — a sentence that President Trump later commuted.
Stay informed! Receive breaking news alerts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts
What do YOU think? Click here to jump to the comments!
Sponsored Content Below