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George Santos banned for life from betting platform Kalshi

Former US congressman George Santos has been permanently banned from the prediction market platform Kalshi over alleged insider dealing and misleading comments.

  • Kalshi alleged George Santos placed bets related to his attendance at a State of the Union address, an event he could directly influence.
  • Santos reportedly earned $17,839.57 from trades that Kalshi said were based on false or misleading public statements.
  • In July, Santos agreed to pay $35,000 to settle a federal investigation by the Commodity Futures Trading Commission regarding these trades.

Prediction market operator Kalshi has permanently barred former US congressman George Santos from trading on its platform. The company alleged that Santos placed bets in February related to his own attendance at US President Donald Trump's State of the Union address, which Kalshi concluded showed signs of insider dealing.

Kalshi stated its compliance team found Santos placed a series of sizeable bets between 2 and 25 February. Some of these were reportedly based on false or misleading public statements about his plans, which moved contract prices. Santos ultimately earned $17,839.57 from these trades.

In July, Santos agreed to pay $35,000 to settle a federal investigation by the Commodity Futures Trading Commission (CFTC) into his State of the Union trades. Kalshi, alleging Santos used non-public information, issued its own penalty of $71,356 (£38,000).

Santos, who was expelled from Congress following fraud and identity-theft charges, thanked Kalshi for the ban on X, adding: "Let's see how much longer you guys are around for."

Why this matters: The disciplinary actions against George Santos highlight the increasing compliance challenges faced by prediction markets, which are attracting more users and closer regulatory scrutiny.

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