Disgraced former congressman George Santos has been permanently barred from the prediction-market platform Kalshi following a disciplinary investigation into his fraudulent trading activity.
The company’s compliance team determined that Santos engaged in insider dealing by placing bets on his own attendance at President Donald Trump’s State of the Union address—an event he directly controlled. By making false public statements to move contract prices, Santos pocketed over $17,800.
This latest scandal follows a pattern of deceit from the former lawmaker, who previously pleaded guilty to wire fraud and aggravated identity theft. While Santos served only three months of a seven-year prison sentence before receiving a commutation from President Trump, his legal troubles have persisted.
In addition to the lifetime ban, Santos was forced to pay a $71,356 penalty to Kalshi and settled a separate federal investigation with the Commodity Futures Trading Commission for $35,000.
As prediction markets face increased scrutiny, this case highlights the necessity for platforms to aggressively police the misconduct of bad actors who attempt to exploit these systems for illicit profit.
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