Kalshi Bans George Santos for Life Over Insider Trading on State of the Union Bets
- Prediction market platform Kalshi has permanently banned former U.S.
- A company filing on Kalshi's website shows Santos pulled in more than $17,000 in profit on wagers predicting whether he would show up to the congressional address.
- The Kalshi ban stacks on top of prior enforcement actions by federal regulators regarding the exact same series of trades.
Prediction market platform Kalshi has permanently banned former U.S. Representative George Santos. The exchange also hit him with a financial penalty of $71,356 following an investigation into allegedly unlawful trades tied to his attendance at the 2026 State of the Union address, according to CBS News and CNBC reporting.
George Santos banned for life from Kalshi
A company filing on Kalshi’s website shows Santos pulled in more than $17,000 in profit on wagers predicting whether he would show up to the congressional address. A Kalshi spokesperson confirmed to CBS News that Santos is the first person to receive a lifetime ban from the exchange due to a lack of cooperation with its compliance department. Investigators established reasonable cause to believe Santos engaged in insider trading by wagering on an event he could directly influence through his own actions and public statements.
Federal penalties and prior CFTC enforcement
The Kalshi ban stacks on top of prior enforcement actions by federal regulators regarding the exact same series of trades. Back in July, the Commodity Futures Trading Commission (CFTC) ordered Santos to pay a $35,000 penalty and imposed a three-year trading ban, as reported by CBS News.
https://x.com/Georgesantos/status/2094424969841148210
The CFTC alleged that Santos traded on contracts titled “Who will attend the State of the Union?” between Feb. 12 and Feb. 25. At the same time, he made public statements explicitly designed to move contract prices. Contract prices shifted in a direction favorable to Santos’s positions after he published posts on social media, allowing him to secure over $17,500 in profit, according to the CFTC statement cited by CBS News. In March, Santos addressed the trading controversy on his podcast, remarking that some people lost money while others made unexpected money, demonstrating the fragility of prediction markets.
Social media defiance and political fallout
Santos took to X on Monday to fire back at the platform’s decision, writing, Hey @Kalshi thanks for the lifetime ban from your gambling platform. Let’s see how much longer you guys are around for,
according to CBS News.
Long before the prediction market penalties piled up, Santos represented New York’s 3rd Congressional District from January 2023 until his expulsion from the House of Representatives later that year. That expulsion followed a House Ethics Committee investigation that found substantial evidence of wrongdoing, as reported by CNBC. In 2024, Santos pleaded guilty to fraud and identity theft and was sentenced to prison, though President Donald Trump later ordered his release. In June, rival prediction market Polymarket also terminated a paid influencer relationship with Santos amid the federal investigations.
Crackdown on political candidates betting on themselves
Kalshi’s disciplinary actions on Monday stretched far beyond Santos. The sweep included three other enforcement actions against individuals running for public office who placed bets on their own candidacies, according to CBS News.
https://x.com/georgesantos/status/2026058999309701294
While three political candidates—including congressional nominee Laurie Buckhout of North Carolina—agreed to penalties and three-year bans after cooperating with compliance inquiries, Kalshi singled out Santos for a permanent ban due to his lack of cooperation with investigators.