Regulators investigate George Santos after Kalshi flagged State of the Union trades

The Department of Justice and the Commodity Futures Trading Commission have opened an investigation into former Representative George Santos after suspicious trades on the event-market Kalshi tied to the February State of the Union address, with reports saying the trades produced tens of thousands of dollars in gains for Santos ^{[1] [2] [3]}.

Kalshi detected the activity as suspicious, froze Santos’s account and referred the matter to regulators; the platform says the trades appeared to bet that Santos would not attend after he had publicly said he planned to be at the address, and Kalshi requested an interview with him as part of its referral ^{[4] [2] [3]}.

Following recent cases, Kalshi and rival platform Polymarket have implemented enhanced monitoring and enforcement measures to detect and deter potentially abusive trading on event markets ^[4].

The investigations by the DOJ and CFTC are ongoing; no criminal charges related to these Kalshi trades have been reported publicly as of the cited reports ^{[1] [2]}.