PANews reported on June 3 that, according to NPR, the U.S. Department of Justice is investigating former Congressman George Santos for insider trading on the prediction market Kalshi. Sources familiar with the matter revealed that Santos released a video message in February indicating he would attend Trump's State of the Union address, but ultimately did not appear. Prior to this, Santos had bet that he would not attend, profiting tens of thousands of dollars. Kalshi detected Santos's trading, froze his accounts, and transferred the case to the Commodity Futures Trading Commission and the Department of Justice, both of which have launched investigations against him. Santos himself denies any knowledge of any investigation.

Santos was convicted in 2023 of 13 counts of wire fraud, money laundering, and theft of political contributions, and sentenced to more than seven years in federal prison. However, due to a commutation of his sentence by President Trump last October, he only served four months. This investigation comes at a time when prediction markets such as Kalshi and Polymarket are under close congressional scrutiny, and law enforcement has recently filed criminal charges in several cases involving the use of insider information to profit from prediction markets.