An online prediction platform has terminated its business relationship with former congressman George Santos while federal authorities examine whether he engaged in illegal trading practices on a competing betting site.
According to sources familiar with the investigation, Santos wagered against his own presence at President Donald Trump’s State of the Union address on February 24th through the prediction marketplace Kalshi. This occurred after he had publicly declared his plans to attend the speech. Santos later cited flight delays as the reason for his absence.
Kalshi discovered the questionable betting activity and forwarded the information to the Commodities Future Trading Commission, which has launched an investigation into Santos for potential insider trading violations, according to a second source with knowledge of the probe.
Both individuals spoke with The Associated Press under anonymity because they lacked authorization to discuss the ongoing matter.
At the time of the State of the Union event, Santos was already serving as a paid influencer for Polymarket, leveraging his significant social media presence to promote the company. He had been released from federal prison in October following a clemency grant from Trump in connection with fraud charges.
When contacted by the AP for comment, a Polymarket representative confirmed the company was proceeding with contract termination following this week’s disclosures.
Santos did not return phone calls or text messages from the AP seeking comment.
During episodes of his podcast “Doing Time with George Santos,” the former congressman has discussed his participation in prediction markets, describing them as “easily manipulable.”
“There’s definitely some space for speculation. There will be investigations. There will be scrutiny,” he stated in March. “I just want to make sure that people understand: It is not straightforward. It is not a crime to do prediction market.”
He added: “I think it’s fun and you can make a little money and you can have fun with it, but just understand that there will always be advantaged players in this game and it’s very hard to understand who they are.”
Santos secured his congressional seat in 2022 by campaigning with a fabricated identity as a successful Wall Street businessman, despite having no financial industry experience and facing personal financial difficulties including rent payment struggles.
He faced expulsion from Congress and entered guilty pleas to wire fraud and identity theft charges in a criminal case involving the theft of donor funds, which he used for personal purchases including luxury apparel.
After receiving a sentence exceeding seven years in prison, Santos completed 84 days of incarceration before Trump commuted his sentence.
