George Santos, the disgraced former New York congressman whose political career unraveled amid fraud convictions and expulsion from Congress, is now facing questions over his activity on online prediction markets, according to sources familiar with the matter.

The scrutiny reportedly centers on betting activity tied to a market offered by Kalshi that asked whether Santos would attend President Donald Trump’s State of the Union address earlier this year.

According to one source, Kalshi detected unusual trading patterns involving the market and launched an internal review. The platform allegedly concluded that the account responsible for the activity belonged to Santos.

The market attracted millions of dollars in wagers from users betting on whether various public figures would appear at the president’s address. Those listed reportedly included Santos, Barron Trump, hockey star Jack Hughes, and MAGA-aligned journalist Nick Shirley, whose reporting on a Minnesota fraud case drew widespread attention online.

Before the speech, Santos publicly indicated that he planned to attend. However, he ultimately did not appear at the event.

The source said Kalshi determined the account belonged to Santos, froze the account, and referred the matter to the Justice Department and the Commodity Futures Trading Commission.

A second source said the Commodity Futures Trading Commission, the federal agency responsible for overseeing prediction markets, has opened an investigation into the matter.

CNN contacted Santos for comment. Kalshi declined to comment on the allegations.

The federal inquiry was first reported by NPR. In comments to NPR, Santos said he was unaware of any investigation involving insider trading allegations. NPR further reported that the Justice Department is also examining the matter. CNN subsequently sought comment from the department.

The latest controversy comes after Santos’ highly publicized criminal case. He had been serving a seven-year prison sentence after being convicted on aggravated identity theft and wire fraud charges tied to his 2022 congressional campaign. President Trump commuted his sentence last year, resulting in Santos spending fewer than three months behind bars.

The case also shines a spotlight on the rapid growth of prediction markets such as Kalshi and Polymarket, which allow users to wager on a wide range of future events, from sporting contests and elections to entertainment outcomes.

These platforms operate under federal oversight and are regulated as commodity futures markets. However, critics argue that the industry’s explosive expansion has outpaced the regulatory framework governing it, prompting growing concern among lawmakers and state officials who believe additional safeguards may be needed.

{Matzav.com}