Kalshi Permanently Bans George Santos Over State of the Union Trading

TL;DR

• Kalshi permanently banned former U.S. Representative George Santos and imposed a $71,356 penalty over trades linked to his State of the Union attendance.
• The CFTC previously ordered Santos to surrender $17,569.98 in profits and pay a $17,500 civil penalty.
• The case highlights why regulated prediction markets are strengthening surveillance, verification and anti-manipulation controls as adoption grows.
  

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Prediction market exchange Kalshi has permanently banned former U.S. Representative George Santos after finding that he violated its trading rules by wagering on whether he would attend the 2026 State of the Union address. The platform also imposed a $71,356 financial penalty, its first permanent ban against an individual.

The case centers on trades Santos made while publicly discussing his plans for the event. According to the Commodity Futures Trading Commission, Santos traded both sides of the contract and published statements that moved prices in ways favorable to his positions. The regulator said the trades generated $17,569.98 in profits.

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