Kalshi Bans George Santos Over State of the Union Trading Scandal

Kalshi, a prediction market platform, has permanently banned former U.S. Rep. George Santos due to his improper trading activity tied to his State of the Union attendance. This decision marks Kalshi's first permanent trading ban and raises concerns about insider trading risks in the crypto space.

The company found reasonable cause to discipline Santos over trades connected to his planned attendance at the State of the Union event, as well as his public comments that influenced contract prices surrounding the event.

Santos had previously settled related allegations with the Commodity Futures Trading Commission (CFTC), agreeing to pay $35,000 without admitting or denying the agency's findings. He is now required to pay an additional $71,000 under Kalshi's disciplinary settlement.