WASHINGTON (VINnews) — Federal regulators and the Justice Department have opened investigations into former U.S. Rep. George Santos over allegations that he profited from bets placed on a prediction market tied to his attendance at President Donald Trump’s State of the Union address, according to people familiar with the matter.

Santos allegedly placed wagers that he would not attend the speech after publicly telling followers on social media that he planned to be there, according to individuals with knowledge of the trades. He ultimately did not attend, causing odds on the prediction market platform Kalshi to shift sharply.

Kalshi detected the trading activity, froze Santos’ account and referred the matter to federal authorities, according to a person familiar with the company’s internal review. Santos told NPR he was unaware of any investigation and declined to confirm whether he had an account on the platform.