June 3 (Reuters) – Prediction market operator Kalshi reported former U.S. Representative George Santos to the Department of Justice after detecting suspicious trading activity, the Associated Press reported on Wednesday, citing a person familiar with the matter.
Santos repeatedly said he would be going to President Donald Trump’s State of the Union address on February 24, then bet against his own attendance, the report said.
Kalshi also reported the trades to the Commodity Futures Trading Commission, a federal regulatory body, the report added.
The CFTC, the DOJ and Kalshi did not immediately respond to Reuters requests for comment. Santos could not be immediately reached for comment.
The case comes as the fast-growing prediction market industry faces regulatory pressure to keep a rein on insider trading as traders wager on the outcomes of political, economic and other real-world events.
Santos, who was expelled from Congress over fraud and identity theft, last year had his more than seven-year prison sentence commuted by U.S. President Donald Trump.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Devika Syamnath)
