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Kalshi bans ex-congressman George Santos for life after suspicious trades
Confirmed
The prediction marketplace platform Kalshi has hit former U.S. Rep. George Santos with its first-ever lifetime ban after finding he bet against his own announced plans to attend President Donald Trump’s State of the Union address.
However, Santos proceeded to make a series of trades linked to his attendance at the event and to make multiple public statements in an effort to influence the price of the prediction market contract, according to Kalshi.
A Kalshi spokesperson said Santos is being banned due to "his lack of cooperation" with its compliance department, which established "reasonable cause" to believe he had engaged in insider trading over his attendance at the address.
Before his announcement, Santos had allegedly placed bets on Kalshi that he was not going to attend the State of the Union, NPR reported. In addition to barring him from “direct or indirect access” to its platform, Kalshi fined Santos $71,356 — multiples of the $17,839.57 it said he made from his wagers.
Kalshi said it hit him with extra penalties because of “his lack of cooperation” with its probe. In August, the CFTC ordered a former White House teleprompter operator to pay $172,000 after the agency found that he made more than $100,000 on Kalshi bets related to presidential speeches that he had prior access to before they were delivered.
“He chose a prompt, practical resolution, rather than protracted, costly litigation, and that choice should not be mistaken for admission of any wrongdoing, because it is not one,” Murray said then in a statement Santos shared on X.
After serving just 84 days, however, he was ordered released by President Trump, who called Santos a "rogue" but said he did not deserve a harsh sentence and should get credit for voting Republican. In a statement at the time, Santos’ lawyer said his client had a “genuine intention” to attend the State of the Union, even booking a hotel and plane ticket before a winter storm scuttled the plans.
Santos, who was revealed to have fabricated large swaths of his background during his congressional campaign, was expelled from Congress while under federal investigation for fraud in 2023. According to a disciplinary filing released by the firm, its compliance team determined there was reasonable cause to conclude that the former lawmaker participated in unlawful trades.
What's confirmed
- A Kalshi spokesperson said Santos is being banned due to "his lack of cooperation" with its compliance department, which established "reasonable cause" to believe he had engaged in insider trading over his attendance…
- The prediction marketplace platform Kalshi has hit former U.S. Rep. George Santos with its first-ever lifetime ban after finding he bet against his own announced plans to attend President Donald Trump’s State of the…
- Kalshi said it hit him with extra penalties because of “his lack of cooperation” with its probe.
- Before his announcement, Santos had allegedly placed bets on Kalshi that he was not going to attend the State of the Union, NPR reported.
What's still developing
- Santos could influence the outcome of the event and so was prohibited from placing bets related to the State of the Union, according to a notice posted on Kalshi's website.
- However, Santos proceeded to make a series of trades linked to his attendance at the event and to make multiple public statements in an effort to influence the price of the prediction market contract, according to…
- "After these posts, the SOTU contract prices moved in a direction favorable to Santos' positions which allowed him to make over $17,500," the CFTC said in a July statement .
- After serving just 84 days, however, he was ordered released by President Trump, who called Santos a "rogue" but said he did not deserve a harsh sentence and should get credit for voting Republican.
- On Monday, Kalshi issued three other enforcement actions against people running for public office who bet on their own candidacy.
- In August, the CFTC ordered a former White House teleprompter operator to pay $172,000 after the agency found that he made more than $100,000 on Kalshi bets related to presidential speeches that he had prior access…
- In addition to barring him from “direct or indirect access” to its platform, Kalshi fined Santos $71,356 — multiples of the $17,839.57 it said he made from his wagers.
- “He chose a prompt, practical resolution, rather than protracted, costly litigation, and that choice should not be mistaken for admission of any wrongdoing, because it is not one,” Murray said then in a statement…