George Santos, the former US congressman, has been banned for life from trading on the prediction market platform Kalshi. This decision was announced late last week after an investigation determined that Santos had manipulated the prices of contracts related to his planned attendance at the 2026 State of the Union address.
In addition to the ban, Santos was fined $71,356. Kalshi's compliance team found that he executed a series of significant trades throughout February 2026 concerning contracts that would pay out based on whether he attended the address scheduled for February 24. Moreover, Santos publicly commented on his attendance, with some statements identified as false or misleading, intended to sway the price of contracts labeled “Yes” or “No” regarding his presence at the event.
The exchange reported that these statements effectively influenced the market prices, allowing Santos to earn profits amounting to $17,839.57. After identifying the suspicious trades, Kalshi froze Santos’ account and alerted federal authorities.
In response to the lifetime ban, Santos criticized Kalshi, taking to social media platform X to express his discontent. "Hey @Kalshi thanks for the lifetime ban from your gambling platform. Let’s see how much longer you guys are around for," he posted. He further labeled Kalshi as an "unserious company," suggesting that it does not adhere to its own announced procedures and deadlines.
As of August 28, 2026, the penalties were enacted, preventing Santos from any type of trading—whether directly or indirectly—on Kalshi. Earlier this year, Santos also faced scrutiny from the prediction market Polymarket, which ended its paid partnership with him amid a Justice Department investigation into a potential wager he placed on his own attendance at the State of the Union.
Last April, a federal judge sentenced Santos to 87 months in prison on charges of felony wire fraud and check fraud. Following several months of incarceration in 2025, he received clemency from then-President Donald Trump, leading to his release. After his release, Santos took on the role of influencer for Polymarket.
Kalshi's announcement regarding Santos was part of a broader response to increased concerns over the integrity of trading within its platform. The exchange reported several other disciplinary actions, highlighting Santos’ case as the most severe among them. Ben Midgley, a Republican gubernatorial candidate in Maine, was fined $5,434.30 and received a three-year suspension for purchasing under $1,000 in contracts linked to his campaign. Similarly, Laurie Buckhout, a congressional candidate in North Carolina, faced a fine of $2,589.96 and a three-year suspension for buying under $1,000 in contracts tied to her race. Billionaire Stephen Cloobeck, running for California governor, was fined $31,770 after buying approximately $10,000 in contracts associated with his campaign, and he too was suspended for three years. All these individuals cooperated with Kalshi's investigations.
Santos’ case stands out due to the allegations that he intentionally made false or misleading statements to impact contract prices, leading to substantial profits and violations of rules regarding manipulation and failure to comply with regulatory protocols. His infractions prompted a permanent ban and a more severe financial penalty than those assigned to other violators of the exchange.
