New York — Online forecasting platform Polymarket has ended its paid relationship with it George Santos While federal regulators investigate whether the former congressman illegally Bet against his presence In President Donald Trump’s State of the Union address.
Santos placed bets on another forecast market, Calci, after publicly announcing his intention to attend the Feb. 24 speech, according to a person familiar with the investigation. He later blamed a flight delay for missing the event.
Calci discovered the suspicious trades and referred them to the Commodity Futures Trading Commission, which opened an investigation into Santos for possible insider trading, according to another person familiar with the investigation.
Both spoke to The Associated Press on condition of anonymity because they were not authorized to discuss the matter publicly.
By the time of his State of the Union address, Santos was already working as a Polymarket influencer, using his large online platform to promote the controversial brand. He was released from federal prison last October after Trump I granted him clemency In a fraud case.
In response to an inquiry from the AP, a Polymarket spokesperson said the company is terminating the contract as a result of this week’s revelations.
Santos did not respond to phone calls and text messages from the AP.
On his podcast, “Spending Time with Jorge Santos,” the former congressman spoke about his involvement in prediction markets, which he described as “easily manipulated.”
“There is certainly some room for speculation,” he said in March. “There will be investigations. There will be scrutiny.” “I just want to make sure people understand: It’s not straightforward. Doing a prediction market is not a crime.”
He continued: “I think it is fun and you can make a little money and have fun with it, but just understand that there will always be special players in this game and it is very difficult to understand who they are.”
Santos won election to Congress in 2022 after campaigning using a false persona as a wealthy, self-made Wall Street dealmaker, when in reality he had no background in finance and was struggling to pay his rent.
He was expelled from Congress and pleaded guilty to wire fraud and identity theft in a criminal case that involved stealing money from donors, using some of it for personal expenses including designer clothing.
Santos was sentenced to more than seven years in prison, serving 84 days before Trump commuted his sentence.