Kalshi Issues Lifetime Ban and Fine to George Santos

Prediction market platform Kalshi Inc. issued its first-ever lifetime ban and a $71,356 penalty against former Republican Representative George Santos. The action follows a Commodity Futures Trading Commission investigation into trades Santos made regarding his own attendance at President Donald Trump's State of the Union address in February 2026.

Regulators alleged that Santos profited by purchasing contracts predicting his absence while posting misleading social media statements suggesting he would attend. Although Santos settled the federal case in July by paying over $35,000 and accepting a three-year trading ban, Kalshi imposed a permanent ban because Santos failed to cooperate with the company's internal investigation.

Santos responded to the ban on X by mocking the platform and questioning its longevity. His attorney, Collin Murray-Boyles, stated the previous settlement with the federal regulator was intended to avoid costly litigation and did not constitute an admission of wrongdoing. The case arrives amid increased regulatory scrutiny of insider trading within prediction markets, including recent penalties against a White House teleprompter operator.