Federal authorities are investigating former Representative George Santos for potential insider trading violations related to bets he placed on a prediction market platform, according to multiple reports citing sources familiar with the matter.

The investigation centers on Santos allegedly placing bets on Kalshi, an online prediction market, regarding whether he would attend the State of the Union address in February. The former New York Republican congressman was expelled from the House of Representatives in December 2023.

Santos was reportedly referred to federal authorities after the suspicious betting activity was identified. Prediction markets like Kalshi allow users to bet on the outcomes of various events, including political developments.

The Department of Justice is examining whether Santos' betting constituted insider trading, as he would have had material non-public information about his own intentions regarding State of the Union attendance. Such information could potentially give him an unfair advantage over other bettors on the platform.

Santos previously faced federal charges for campaign finance violations and other alleged crimes before his expulsion from Congress. He has denied wrongdoing in previous cases. The prediction market investigation represents a new line of federal scrutiny into the former congressman's activities.

Neither Santos nor his representatives immediately responded to requests for comment regarding the latest investigation. The Department of Justice declined to comment on the matter.