Kalshi permanently bans George Santos over insider trading concerns
The former US congressman had previously reached a settlement with the CFTC over trades linked to his attendance at a State of the Union address.
US.- Kalshi has permanently banned former US congressman George Santos following an internal investigation into trades that allegedly involved insider information. The case centred on contracts related to Santos’s attendance at the State of the Union address.
Santos initially announced publicly that he would attend but later said he had missed his flight, while allegedly placing trades on Kalshi connected to his absence. The activity prompted a federal investigation, which resulted in a settlement with the Commodity Futures Trading Commission (CFTC). Santos agreed to pay $35,000 and did not face criminal charges.
Kalshi’s compliance team conducted its own review and concluded that Santos’s activity showed signs of insider trading.
Santos responded to the decision in a post on X, criticising Kalshi and questioning how long the company would remain in operation. The former congressman has been involved in several controversies and pleaded guilty to fraud and identity theft in 2024 before later receiving a presidential pardon.
Insider trading continues to pose a challenge for prediction markets. By August, Kalshi and Polymarket had reportedly identified more than 100 potential insider trading cases in 2026, while limited resources at the CFTC have slowed federal investigations and increased pressure on platforms to strengthen their own compliance efforts.
