Former Republican Representative George Santos issued a statement denying insider trading allegations after reports that a prediction market flagged his activity to federal authorities.

On Tuesday, Kalshi reported Santos to federal prosecutors after he publicly said he would attend President Donald Trump’s February State of the Union address, but then allegedly placed a bet against his own appearance.

Santos, who previously represented New York's 3rd Congressional District, said he and his legal team were first informed through an NPR report that the Department of Justice (DOJ) may be looking into him, and that they are now in contact with officials to understand the situation.

He called the accusations “preposterous” and said he would cooperate with any inquiry, while asking media outlets to refrain from contacting him as the matter unfolds.

Why Is George Santos Being Investigated?

Santos is under scrutiny after the online platform Kalshi flagged his trading activity to federal authorities, raising concerns about potential insider trading. Kalshi referred the matter to the DOJ and the Commodity Futures Trading Commission after detecting what it described as suspicious bets tied to Santos’ attendance at Trump’s State of the Union on February 24, 2026.

Federal regulators are examining whether Santos used nonpublic or self-generated information to influence the market and profit from it. The case comes as prediction markets face growing oversight from lawmakers and regulators concerned about their vulnerability to manipulation.

What Do the Allegations Claim?

The allegations center on claims that Santos publicly said he would attend Trump’s State of the Union address, while allegedly placing bets that he would not appear. A person familiar with the investigation told the Associated Press that the trades were made ahead of the speech and raised red flags because they appeared to contradict his public statements.

Investigators are examining whether Santos’ statements may have influenced market odds in a way that benefited his own trades. The episode has fueled criticism that prediction markets can be exploited by participants with privileged or self-driven knowledge of outcomes.

Read George Santos’ Full Statement

Santos wrote on Wednesday on X, “To the 100’s 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.”

When Was George Santos Arrested?

Santos was arrested in 2023 on federal charges that included wire fraud, identity theft and financial misconduct related to his congressional campaigns. Prosecutors accused him of fabricating aspects of his background and misusing donor funds, allegations that ultimately led to his expulsion from the U.S. House of Representatives.

He later pleaded guilty in 2024 and was sentenced to more than seven years in prison. The case marked a dramatic fall for the New York Republican, whose résumé and personal history were widely exposed as false after he took office.

Was George Santos Pardoned by Donald Trump?

Santos was not formally pardoned after his 2024 sentencing, but he was granted clemency by Trump in October 2025. Trump ordered his release after Santos served a relatively short portion of his sentence, describing him as a “rogue” but arguing that the punishment had been excessive.

The clemency decision drew criticism at the time, given Santos’ high-profile expulsion from Congress and criminal conviction. His release allowed him to reenter public life, including commentary and political activity.

This article includes reporting by the Associated Press.