The U.S. Department of Justice is investigating former Congressman George Santos for alleged insider trading on the prediction market Kalshi. Santos reportedly placed a bet that he would not attend Trump's State of the Union address after releasing a video suggesting he would, profiting tens of thousands of dollars. Kalshi detected the suspicious trading activity, froze Santos's accounts, and referred the case to the Commodity Futures Trading Commission and the Department of Justice, both of which have initiated investigations. Santos, who denies knowledge of any investigation, was previously convicted in 2023 on charges including wire fraud and money laundering, receiving a sentence of over seven years. However, his sentence was commuted by President Trump, resulting in only four months served. This investigation occurs amid heightened scrutiny of prediction markets like Kalshi and Polymarket, with recent law enforcement actions targeting insider trading in these platforms.