Kalshi Issues First-Ever Lifetime Ban to Ex-Congressman George Santos

Kalshi, a prominent prediction market platform, has permanently banned former US Rep George Santos. While the decision comes after an investigation into his bets on President Donald Trump’s State of the Union address, it marks the first lifetime ban in the prediction market’s history.

Kalshi permanently bans George Santos over State of the Union bets

A CNBC report revealed that Kalshi has banned former US Rep George Santos from using its prediction market platform permanently. Santos reportedly made public statements about attending President Donald Trump’s State of the Union address. After investigating his trades, Kalshi claimed that he used those statements to influence the market while betting on the outcome.

Notably, Kalshi’s ban comes on allegations of insider trading. The company argued that Santos’ statements affected the prices of the related prediction contracts. It also helped create speculation around whether he would attend the event. This ultimately earned him around $17,839 after he didn’t attend the event. The company stated,

“The Compliance Department found that Santos made these statements with the intent to manipulate the price of the Yes or No contracts that he intended to purchase. Ultimately, these statements did in fact manipulate the price of said contracts.”

Santos refuses to cooperate but mocks ban

In addition to the ban, Kalshi also imposed a fine of $71,356. While the penalty is considerably higher than the $17,839.57, which Santos allegedly gained from his trades, Kalshi asserted that the additional fine was due to Santos’ cooperation during the investigation.

This comes in contrast with Kalshi’s recent three-year ban on former White House staffer Gabriel Perez. As CoinCodex reported, Perez was identified using insider knowledge about Trump’s speeches to earn $107,500. As he reportedly cooperated with investigations, he faced only a three-year ban and a $65,000 penalty.

Interestingly, Santos appears less likely to be concerned about Kalshi’s lifetime ban. This is clear enough in one of his recent X posts, in which he reacted to the prediction market platform’s decision. He mocked the platform, stating, “Thanks for the lifetime ban from your gambling platform. Let’s see how much longer you guys are around for.”

CFTC investigation adds to the Kalshi controversy

It is worth noting that the latest Kalshi ban comes on the heels of a recent CFTC investigation. Following the probe, Santos agreed to pay $35,000 to settle with the regulator. The CFTC identified that Santos was involved in a “series of material misrepresentations and omissions” in his social media posts about his possible attendance at the State of the Union. One of his previous posts read, “I’m gonna be in the gallery.”

However, Santos’ attorney, Joseph Murray, stated that the accused did not admit any wrongdoing as part of the settlement. Murray noted, “He chose a prompt, practical resolution, rather than protracted, costly litigation, and that choice should not be mistaken for admission of any wrongdoing, because it is not one.”