AP source says George Santos reported to prosecutors over suspicious Kalshi trades

Key Points:

• Kalshi, an online prediction market, reported U.S. Rep. George Santos to federal prosecutors and the Commodity Futures Trading Commission (CFTC) after he allegedly bet against his own attendance at President Trump's State of the Union address despite publicly boasting he would attend.
• Santos, who was convicted of fraud and identity theft and later granted clemency by Trump, reportedly made suspicious trades just before the Feb. 24 speech, prompting the referral to the Department of Justice and CFTC for potential insider trading.
• Santos denied knowledge of the investigation and did not confirm whether he had a Kalshi account, but admitted on his podcast that some people lost money on the prediction market related to his attendance.
• Prediction markets like Kalshi and Polymarket have faced increasing scrutiny over insider trading risks, with regulators and lawmakers urging stronger safeguards; previous investigations have led to criminal charges involving misuse of insider information.
• Santos was expelled from Congress due to his fraud conviction but was released from prison early after Trump’s intervention, highlighting ongoing controversy surrounding his legal and political status.