Polymarket cuts ties with George Santos as regulators probe trades on rival prediction market
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Add AP News as your preferred source to see more of our stories on Google. Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. Share NEW YORK (AP) — The online prediction platform Polymarket is ending its paid relationship with George Santos as federal regulators investigate whether the former congressman illegally bet against his own attendance at President Donald Trump’s State of the Union. Santos placed the bets on another prediction marketplace, Kalshi, after publicly announcing his intention to be at the Feb. 24 speech, according to a person familiar with the investigation. He later blamed a delayed flight for missing the event. The suspicious trades were detected by Kalshi and referred to the Commodities Futures Trading Commission, a federal regulator that has opened a probe into Santos for possible insider trading, according to a second person familiar with the investigation. Both spoke to The Associated Press on the condition of anonymity because they were not authorized to discuss the matter publicly. Santos was released from federal prison last October after Trump granted him clemency in a fraud case. By the time of the State of the Union address, four months later, he was already working in an influencer capacity for Polymarket, using his substantial online platform to promote the controversial brand.
In response to an inquiry from the AP, a Polymarket spokesperson said the company was in the process of terminating the contract as a result of this week’s revelations. Santos did not respond to phone calls and text messages from the AP. He wrote on social media Wednesday that the allegation was “preposterous,” adding that his legal team was in touch with the Justice Department. Read More On his podcast, “Doing Time with George Santos,” the former congressman has suggested that prediction markets are “easily manipulable,” and rife with abuse. “There’s definitely some space for speculation. There will be investigations. There will be scrutiny,” he said in March. “I just want to make sure that people understand: It is not straightforward. It is not a crime to do prediction market. I don’t think people should be taking this seriously.” The financial regulator overseeing prediction markets, meanwhile, has pledged to take the issue of insider trading “extremely seriously.” Sign up for Morning Wire: Our flagship newsletter breaks down the biggest headlines of the day. Email address Sign up By checking this box, you agree to AP's Terms of Use and acknowledge that AP may collect and use your data pursuant to our Privacy Policy “There is a myth in the mainstream media and social media that insider trading law doesn’t apply in the prediction markets.
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