Former congressman George Santos first to be permanently banned from Kalshi
Former US congressman George Santos has been permanently prohibited from trading on the prediction market Kalshi, the company announced late last week.
Friday’s announcement followed an investigation that found he manipulated contract prices linked to his anticipated attendance at the 2026 State of the Union address.
He was also fined $71,356.
‘Thanks for the lifetime ban’
Kalshi’s Compliance Department uncovered a series of large trades made by Santos throughout February 2026 involving contracts that would pay out based on whether he attended the State of the Union address on 24 February.
The exchange reported that Santos then issued public statements regarding his attendance, some deemed false or misleading, that were deliberately aimed at influencing the price of “Yes” or “No” contracts connected to his attendance.
Kalshi stated that these statements successfully moved market prices and that Santos realised profits totalling $17,839.57 from these trades. After detecting Santos’ trades, Kalshi froze his account then referred the matter to federal authorities, NPR reported.
Santos criticised the exchange and its decision to ban him from trading in a series of posts on X.
Santos went on to call Kalshi an ‘unserious company’, claiming that it also ‘violates its own notices and deadlines’.
Polymarket ends their relationship
Kalshi enforced penalties under multiple exchange rules designed to mirror federal market regulations. These include prohibitions on trading when a participant can influence the outcome of an event, trading on material non-public information and engaging in manipulative or fraudulent practices.
The sanctions, effective from 28 August 2026 , bar Santos from any direct or indirect trading access on Kalshi.
Earlier this year, fellow prediction market platform Polymarket also ended its paid relationship with Santos amid a Department of Justice investigation on whether he had placed a wager on his appearance at the same State of Union address.
A federal judge sentenced Santos to 87 months in prison last April on felony wire fraud and check fraud charges. After Santos served several months in 2025, US President Donald Trump granted the former congressman clemency, resulting in his immediate release.
Shortly after his release, Santos had begun working as an influencer for Polymarket.
Other disciplinary settlements also announced
Santos’s case represents the most severe among four disciplinary settlements announced by Kalshi, which has faced increasing scrutiny concerning insider knowledge risks and event outcome influence by market participants.
Other individuals disciplined for trading contracts tied to their own campaigns included:
Ben Midgley, Republican candidate for governor of Maine, who admitted purchasing under $1,000 worth of contracts related to his campaign. He accepted a $5,434.30 fine and a three-year suspension.
Laurie Buckhout, candidate for a North Carolina congressional seat, who was fined $2,589.96 and suspended for three years after buying under $1,000 of contracts linked to her race.
Stephen Cloobeck, billionaire and 2026 California gubernatorial candidate, who purchased approximately $10,000 in contracts tied to his campaign. He was fined $31,770 and suspended for three years.
Each settlement involved cooperation with Kalshi’s investigation.
Why was Santos’ under further scrutiny?
What distinguishes Santos’s penalty is the exchange’s allegation that he actively issued false or misleading statements to alter prices and profited materially, violating additional rules such as failure to cooperate and manipulative conduct.
These breaches escalated his sanction to a permanent ban and a significantly larger fine compared to others involved.
The platform’s Rule 5.17(z), cited in all the matters, strictly prohibits trading in contracts where participants have decision-making power or can otherwise influence the underlying event, regardless of influence magnitude.
Kathryn Evans
Kathryn covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.