Kalshi bans former GOP Rep. Santos, orders $71K penalty

George Santos, former U.S. Representative, was banned from participating in Kalshi’s prediction market and has been asked to pay more than $71,000. This marks the first time Kalshi has banned a person indefinitely in response to disciplinary sanctions. However, it suggests that alongside federal regulators, the platforms are also starting to impose penalties on their users who bet on results they can affect personally.

Mr. Santos bet on whether or not he would be present at the State of the Union Address, which was a market that only he could affect himself.

Kalshi bans Santos after CFTC fines him $35K

According to the notice issued by Kalshi’s compliance team, it has been established that “George Santos engaged in trading activity in certain markets related to his attendance at the State of the Union address.”

The permanent ban and the fine of more than $71,000 have been imposed independently of any government proceedings by Kalshi itself. Meanwhile, it is not the only punishment that Santos is receiving because of those trades. Last month, he settled with the Commodity Futures Trading Commission (CFTC). The agency holds jurisdiction over prediction markets. 

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