Kalshi bans former Rep. George Santos for life after alleged insider betting
Prediction-market platform Kalshi imposed a lifetime ban on ex-Congressman George Santos and levied $71,356 in penalties for alleged insider trading related to a bet on his attendance at the State of the Union.
Kalshi announced Monday that it has issued its first lifetime ban to former U.S. Representative George Santos, citing violations of its market rules. The platform said Santos earned $17,839.57 from contracts betting on whether he would attend President Trump’s State of the Union address between Feb. 2 and Feb. 25, 2026, and failed to cooperate with an internal investigation, resulting in $71,356 in penalties.
Santos had posted on X that he would be present in the gallery for the address, but later claimed he watched it from an airport due to weather conditions. The Commodity Futures Trading Commission (CFTC) alleged that his statements misled market participants and that he should not have wagered on an event he could influence.
In July, Santos settled with the CFTC, agreeing to pay more than $35,000 without admitting wrongdoing. He responded to Kalshi’s ban on X, questioning the platform’s longevity.
The CFTC also barred Santos from all prediction-market platforms for three years, noting his cooperation with the agency’s probe. Kalshi’s rival Polymarket terminated its paid partnership with Santos during the investigation.
The case highlights ongoing concerns about insider trading in prediction markets, prompting Kalshi and Polymarket to introduce stricter anti-insider-trading rules in March. The CFTC has similarly sanctioned other individuals for alleged insider trading on such platforms.