Politicians play prediction markets and also engage in insider trading themselves—Kalshi froze accounts pretty quickly in this wave.

CryptoWorld News reports, citing NPR, that the U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) are investigating former U.S. Representative George Santos’s trading activities on the prediction market platform Kalshi. Santos publicly said this February that he would attend an event before then-President Trump’s State of the Union address, but insiders say he was also betting on Kalshi that he would not attend, and he profited tens of thousands of dollars after ultimately skipping the event. The report says that after Kalshi discovered the relevant trades, it froze his account and referred the case to the DOJ and CFTC. Santos said he was unaware of the investigation and did not confirm whether he has a Kalshi account. As of now, neither of the two regulators has made any public comment.