Kalshi permanently bans George Santos for insider trading on prediction market

Prediction-market operator Kalshi has permanently barred former US congressman George Santos from trading on its platform, alleging he placed bets in February related to his own attendance at President Donald Trump's State of the Union address. Kalshi's compliance team concluded his activity showed signs of insider dealing, prompting the lifetime ban. The company said it acted independently without waiting for external enforcement action. Santos responded on X, thanking Kalshi for the ban and questioning their longevity. The disciplinary action follows a $35,000 settlement with the Commodity Futures Trading Commission in July and a $71,356 penalty from Kalshi. Santos, who was expelled from Congress and served three months of a seven-year prison sentence for wire fraud and identity theft before Trump commuted it, has denied wrongdoing in various matters but admitted to stealing identities. The case highlights increased scrutiny on prediction markets and their compliance burdens.