Kalshi permanently bans former US Rep. George Santos for insider trading and market manipulation related to State of the Union betting, the platform's first lifetime ban.
Regulation & Gov ·
Prediction-market platform Kalshi has permanently banned former US Representative George Santos, the first lifetime suspension the exchange has imposed on any user. The action stems from trading activity linked to Santos's attendance at the State of the Union address on February 24, during which he allegedly placed large positions between February 2 and February 25 in contracts whose outcomes depended on his own presence. Kalshi's Compliance Department determined there was reasonable cause to believe Santos engaged in insider trading and market manipulation; the former representative earned $17,839.57 from these trades despite being barred from participating in them due to his ability to influence the event's result.
The ban takes effect August 28, 2026, and bars both direct and indirect access to the platform. Kalshi also imposed a $71,356 monetary penalty alongside the suspension. This enforcement follows a settlement Santos reached with the Commodity Futures Trading Commission last month, under which he paid $35,000 without admitting or denying the agency's allegations. Santos has publicly disputed Kalshi's process, claiming the platform violated its own notification timelines.
The case reflects mounting regulatory pressure on prediction markets. Authorities in Baltimore have sued Kalshi and Polymarket over sports-betting contracts, while New York's Attorney General is pursuing separate litigation against Kalshi. Prior suspensions by the platform have targeted three US political candidates for betting on election outcomes they could influence.