George Santos Denies Insider Trading Allegations

Former Republican Representative George Santos has denied allegations of insider trading. These accusations arose after a prediction market identified his activity and alerted federal authorities. On Tuesday, the platform Kalshi reported Santos to prosecutors. This report followed Santos announcing his attendance at President Donald Trump’s February State of the Union address but allegedly placing bets contradicting his statement.

Details of the Investigation

Santos, who served New York’s 3rd Congressional District, said an NPR report first informed him and his legal team about the Department of Justice’s potential interest. He stated that they are now communicating with officials to understand the issues at hand. Santos described the claims as “preposterous” and expressed his willingness to cooperate with the investigation, asking media outlets to refrain from contacting him during the process.

Why Is George Santos Being Investigated?

Santos faces scrutiny after the online platform Kalshi reported his trading activity, raising insider trading concerns. Kalshi referred the matter to the DOJ and the Commodity Futures Trading Commission following suspicious bets related to Santos’ attendance at Trump’s State of the Union on February 24, 2026. Authorities are examining whether Santos used nonpublic or self-generated information for market profit.

This case highlights concerns about prediction markets and their potential for manipulation, leading to increased legislative and regulatory oversight.

Allegation Details

The allegations claim that Santos publicly stated he would attend Trump’s State of the Union address while making bets against his attendance. An individual familiar with the investigation informed the Associated Press about trades carried out before the speech. These trades contradict his public statements and raised suspicions.

Investigators are investigating if Santos’ statements influenced market odds, benefiting his trades. The incident intensified criticism that prediction markets could be abused by those with privileged or self-generated information.

George Santos’ Statement

“To the hundreds of reporters calling me through the night. Stop! My legal team and I were made aware by a report from NPR yesterday that the DOJ might be looking into me. So now my legal team is in contact with the DOJ to see what is going on. 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.”

George Santos’ Legal History

In 2023, Santos was arrested on federal charges including wire fraud, identity theft, and financial misconduct tied to his congressional campaigns. Prosecutors accused him of misrepresenting his background and misusing donor funds, which led to his expulsion from the U.S. House of Representatives.

In 2024, he pleaded guilty and received a sentence of over seven years in prison. This marked a significant downturn for the New York Republican, as falsehoods about his résumé and personal history became public after he took office.

Santos’ Clemency by Trump

Although Santos was not formally pardoned after his 2024 sentencing, Donald Trump granted him clemency in October 2025. Trump ordered his release after Santos had served a small portion of his sentence, calling him a “rogue” and arguing that the punishment was excessive.

The clemency decision drew criticism due to Santos’ high-profile expulsion and criminal conviction. His release enabled him to return to public life, engaging in commentary and political activities.

This article includes reporting by the Associated Press.