Polymarket severs Santos contract as DOJ probes alleged Kalshi insider trades
Polymarket terminated its paid promotional contract with former U.S. Representative George Santos on Wednesday, June 3, 2026, as federal regulators investigate whether he used non-public knowledge to trade on event contracts tied to his congressional behavior. The Department of Justice probe centers on alleged bets Santos placed against his own attendance at President Donald Trump's State of the Union address on rival prediction market Kalshi, with questions of whether he exploited inside information about his own plans. Polymarket, which had retained Santos as a paid spokesperson, moved to sever the relationship amid intensifying scrutiny of insider trading across prediction market platforms. Santos reportedly threatened an NPR reporter over coverage of the betting fraud allegations.
Polymarket must now prove its surveillance systems flagged or could have detected Santos-style self-dealing, or face the same co-defendant exposure the CFTC and DOJ are already applying to exchanges that miss insider abuse. The Santos referral set the self-reporting standard; Polymarket's marketing ties to the target make compliance documentation especially critical.