CFTC investigating former congressman Adam Kinzinger over trades on Kalshi betting platform related to his own pardon.
Regulation & Gov ·
The Commodity Futures Trading Commission is examining trades made through a Kalshi account tied to former Representative Adam Kinzinger in late 2024 and early 2025, according to reporting by Politico. The activity included bets on whether Kinzinger himself would receive a presidential pardon, as well as separate wagers on preemptive pardons more broadly. Kinzinger received a pardon from President Biden in January 2025, weeks before the investigation became public. He reported profiting $823 from the positions and stated he placed approximately 25 trades during that period, most of which lost money.
Kinzinger denies any violation, citing his two-year absence from office and lack of insider knowledge when he placed the bets. He claims to have reviewed Kalshi's rules beforehand and understood them to restrict trading where users work for affected agencies, can influence outcomes, or possess nonpublic information. However, Kalshi's terms explicitly bar users from wagering on contracts where they are direct participants, while the CFTC prohibits use of material nonpublic information in regulated markets.
Kalshi is reviewing the transactions independently, though neither the exchange nor the regulator has publicly commented. Kinzinger says neither entity has contacted him regarding the probe. The platform has previously suspended congressional candidates and permanently banned a former representative over similar self-dealing trades, establishing precedent for enforcement.