Published on: June 4, 2026, at 08:23h.
Updated on: June 4, 2026, at 08:23h.
- Polymarket has discontinued its collaboration with George Santos
- This split follows the DOJ’s initiation of an investigation into Santos’ alleged insider trading on Kalshi
- Santos has a history of controversy, having fabricated his background during his congressional campaign
George Santos may once again require assistance from President Donald Trump as the Justice Department investigates whether he engaged in insider trading on Kalshi.
Having been expelled from Congress and sentenced to 87 months in federal prison for serious violations related to campaign finance and fraud, Santos was granted a commutation of his sentence by Trump last autumn.
Post his commutation, the prediction market Polymarket engaged Santos as a paid promoter to advocate for the platform among his vast social media following. Santos has since shared numerous Polymarket trading contracts alongside his takes on various events.
Meanwhile, the DOJ claims Santos was personally trading on the competing platform Kalshi, allegedly executing insider trades concerning events tied to himself. Following the DOJ’s revelations, Polymarket announced it would sever ties with Santos.
Santos Responds to Allegations
On his X account, Santos dismissed the DOJ’s charges as “absurd.”
“The foundation of this accusation is absurd, and I am ready to provide any information requested by the relevant agencies. In the meantime, media, please refrain from inquiring,” Santos asserted.
Santos further criticized the media landscape.
“I’m pleased to continue generating profits for the failing media through their sensationalist narratives,” he remarked.
He also aimed criticism at Kalshi for allegedly failing to safeguard customer information.
“I’ve learned that Kalshi poses a risk to its users. There’s a lack of privacy, leading to frequent leaks,” Santos stated. “Do not forget that they retain your Social Security number, driver’s license, and banking details. They should lose their operational license.”
The DOJ is scrutinizing whether Santos manipulated Kalshi contracts regarding his attendance at Trump’s State of the Union address earlier this year. Ahead of the president’s congressional address, Santos posted a video stating he would attend, all while allegedly buying shares indicating he would not be there. Ultimately, he missed the event, posting from an airport shortly after.
Kalshi is said to have detected the questionable trading activities and subsequently alerted the DOJ for further investigation.
Challenges for Prediction Markets
Although Kalshi reportedly identified Santos’ suspected insider trading and market manipulation, the news fuels criticism directed at prediction markets, emphasizing the need for more stringent regulations.
Multiple legislative proposals, predominantly from Democratic lawmakers, have emerged in Congress aimed at regulating prediction market activities. These range from restricting the types of trades permitted to granting states more jurisdictional authority over these platforms.
However, in the wake of the Trump administration, the Commodity Futures Trading Commission has gained increased authority. Last month, the president asserted the imperative for the CFTC to maintain “exclusive authority” over prediction markets.