Former GOP Congressman George Santos Targeted by Regulators, Fined and Banned from Kalshi
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George Santos, a former Republican congressman, faces over $35,000 in penalties and a three-year ban from Kalshi after federal regulators accused him of manipulating bets related to his State of the Union attendance.
The Commodity Futures Trading Commission has imposed a $17,500 civil penalty and ordered former New York Republican congressman George Santos to forfeit $17,570 in profits after a settlement regarding alleged manipulation of a prediction-market trade. The settlement, which also includes a three-year ban from trading on Kalshi—a platform that allows users to wager on political and other events—demonstrates the growing scrutiny faced by conservatives in financial markets.
Santos placed bets on Kalshi predicting he would not attend President Donald Trump’s State of the Union address, while publicly stating he planned to be there. Later, he announced on X that he would miss the event. Kalshi flagged the activity and referred it to federal authorities, triggering a CFTC investigation that began in June.
"Mr. Santos has agreed to resolve the CFTC’s inquiry and to put this matter behind him. Critically, and consistent with how these regulatory matters are commonly resolved, Mr. Santos has settled without admitting any of the Commission’s allegations, findings, or conclusions," said his attorney Joseph W. Murray.
Murray emphasized that Santos chose "a prompt, practical resolution rather than protracted, costly litigation." This case comes amid a wave of enforcement actions targeting participants in the prediction-market industry, including prior fines and suspensions of congressional candidates for betting on their own races. The CFTC has made insider-trading oversight a priority, even as Congress debates imposing more restrictions on this innovative sector.
Santos, who was expelled from Congress in 2023 and previously faced unrelated fraud and identity-theft charges, was released after a presidential commutation in October 2025. The relentless focus on Santos reflects the ongoing targeting of conservative figures by regulatory authorities.