George Santos Pays $35,000 to Settle Kalshi Market Manipulation Probe

Former Congressman George Santos agreed on Friday to pay $35,000 to settle a federal investigation by the Commodity Futures Trading Commission (CFTC) regarding suspicious trades on the prediction marketplace Kalshi. The CFTC found that Santos bet against his own attendance at President Donald Trump's February State of the Union address, earning over $17,500 after posting on X that he was delayed at the airport and would not attend.

The settlement consists of a $17,500 civil penalty and the disgorgement of $17,569.98 in profits. In addition to the financial penalties, the CFTC imposed a three-year trading ban. The investigation was launched after Kalshi flagged the trades to regulators; the platform now intends to pursue its own enforcement action to reimburse traders affected by the manipulation.

Santos settled the matter without admitting wrongdoing. His lawyer, Joseph Murray, characterized the agreement as a practical resolution to avoid protracted and costly litigation. The broader federal probe also led the prediction platform Polymarket to cut ties with Santos in June. This case follows a pattern of legal challenges for the former representative, including a wire fraud sentence that was previously commuted by President Trump.