Kalshi Permanently Bans George Santos, Imposes Fine Over Bets

The prediction market exchange Kalshi has permanently banned former Rep. George Santos from its platform and fined him $71,356, citing reasonable cause to believe he engaged in insider trading.

This marks Kalshi's first-ever lifetime ban. The company investigated Santos for allegedly placing bets on whether he would attend President Donald Trump's State of the Union address on February 24. Kalshi stated that Santos, as a person capable of influencing the outcome, was prohibited from trading in this market under its rules. The company alleged that Santos placed trades between February 2 and February 25 in a market dependent on his attendance and made public statements about his attendance in an attempt to influence contract prices, with some statements being false or misleading.

Kalshi further alleged that Santos made these statements with the intent to manipulate contract prices, which he profited from, earning $17,839.57 in the "Target Markets." Santos responded on social media, thanking Kalshi for the ban from its gambling platform. The Commodity Futures Trading Commission previously imposed penalties on Santos, including a disgorgement of winnings and a $17,500 fine.

He has also been banned from trading on all platforms for three years. Kalshi also announced penalties against three political candidates: Ben Midgley, Stephen Cloobeck, and Laurie Buckhout, who allegedly wagered on their own races, violating insider trading rules. Buckhout was suspended for three years and fined $2,589.96 for purchasing contracts related to her own candidacy.