Business & Finance
Kalshi permanently bans George Santos over State of the Union prediction trades
The prediction market platform imposed a lifetime ban and a $71,356 penalty after the former lawmaker traded on his own attendance at the event.
The short version
- Kalshi permanently banned former U.S. Rep. George Santos and assessed a $71,356 financial penalty following an investigation into trades linked to his 2026 State of the Union attendance.
- The platform stated Santos profited over $17,000 by trading on non-public information and making misleading public statements to manipulate contract prices, as well as failing to cooperate with its compliance inquiry.
- Santos criticized the platform on social media following the announcement, having previously settled a related Commodity Futures Trading Commission probe in July without admitting guilt.
- The enforcement action follows Santos's three-year federal trading ban and his earlier expulsion from Congress after fraud and campaign finance charges.
Key facts
- Prediction market platform Kalshi permanently banned former GOP Rep. George Santos and ordered him to pay $71,356.[CBS News · CNBC]
- Kalshi stated that Santos made more than $17,000 in profits by betting on whether he would attend the 2026 State of the Union address while releasing public statements intended to sway contract prices.[CBS News · CNBC]
- Kalshi cited a lack of cooperation with its internal compliance department as a reason for the permanent ban.[CBS News]
- In July, the Commodity Futures Trading Commission ordered Santos to pay $35,000 and issued a three-year trading ban regarding the suspicious trades on Kalshi.[CBS News · CNBC]
- Santos settled the federal investigation with the CFTC without admitting to any of the agency's findings.[CNBC]
- Competing prediction platform Polymarket terminated its paid influencer arrangement with Santos in June amid the federal inquiry.[CNBC]