Former Rep. George Santos is disputing allegations that he improperly benefited from prediction-market trading as federal authorities reportedly examine activity connected to his account on Kalshi.
In a June 3 post on X, Santos said he learned through media reports that the Department of Justice could be looking into the matter. He said his attorneys had already contacted federal officials for clarification and that he would cooperate with any requests for information.
“The bases of the accusation is preposterous and I look forward to supplying any information asked of me to any agency that inquires,” Santos wrote.
Reports from NPR, the Associated Press and other outlets say investigators are reviewing trades tied to a market on whether Santos would attend President Donald Trump’s State of the Union address. Kalshi reportedly detected suspicious activity, froze the account in question and referred the matter to the DOJ and the Commodity Futures Trading Commission.
The latest controversy comes months after Santos received executive clemency regarding a fraud case from President Donald Trump. A Justice Department clemency document dated October 17, 2025, shows Trump commuted Santos’ sentence in United States v. Devolder Santos, ordering that it be reduced to time served with “no further fines, restitution, probation, supervised release, or other conditions.”
The grant applied specifically to the federal offenses covered by the case and was issued under the president’s constitutional clemency authority.
George Santos probe comes amid scrutiny on prediction market trades
Authorities are reportedly examining whether Santos traded using knowledge about his own attendance plans before that information became public. Kalshi’s rules prohibit participants from trading on outcomes they can directly influence, making the case part of a broader debate over insider information in prediction markets.
The attention on Santos comes as the industry faces increasing pressure from regulators, lawmakers and market operators. Earlier this year, Polymarket strengthened its rules across both its decentralized platform and regulated U.S. exchange. The company explicitly barred trading on improperly obtained confidential information, illegal tips and contracts tied to events a trader can influence.
“Markets thrive on clarity,” said Neal Kumar, Chief Legal Officer of Polymarket. “These rule enhancements make our expectations abundantly clear for every participant across both platforms and highlight the compliance infrastructure we have already built. As Polymarket continues to scale, we will build on our foundation with clear communication to Polymarket’s users to ensure our markets do what they do best — surface truth.”
Santos has long spoken favorably about prediction markets. During a March episode of his YouTube show, he argued that the sector would play an increasingly important role in politics and public discussion. At one point, he stated, “It is not a crime to do prediction market.”
The industry has recently faced several high-profile controversies. Polymarket reportedly ended a paid promotional relationship with Santos as scrutiny intensified. Separately, prosecutors charged U.S. Army Special Forces soldier Gannon Ken Van Dyke with using classified information connected to an operation involving Venezuelan leader Nicolás Maduro to place profitable prediction-market wagers. Van Dyke has pleaded not guilty.
Last week, federal regulators stated that a Google software engineer secretly used internal company information to place highly successful bets on Polymarket contracts tied to Google’s annual Year in Search rankings.
Santos continues to deny wrongdoing while federal authorities have not publicly detailed the scope of any investigation or announced charges.
ReadWrite has reached out to Kalshi and Polymarket for comment.
Featured image: U.S. House Office of Photography via WikiCommons
The post George Santos rejects trading claims amid expanding prediction market concerns appeared first on ReadWrite.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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