The online prediction market platform Kalshi has officially issued its first permanent ban in company history, and it is targeting former U.S. Rep. George Santos. This decision comes after the platform’s Compliance Department determined there was reasonable cause to believe Santos engaged in insider trading related to his own attendance at the State of the Union address, the Associated Press reported.
The lifetime ban, which became effective last Friday, prevents Santos from accessing the platform in any capacity, and it is accompanied by a $71,356 penalty. The situation centers on bets placed between February 2 and February 25 regarding whether the former congressman would attend the State of the Union.
Kalshi stated that Santos had the ability to influence the outcome of these bets, yet he proceeded to place large wagers while simultaneously making public statements that influenced the market price. The platform noted that these actions included making what it described as false or misleading statements. When the speech occurred, Santos posted on X that he had been waylaid at the airport, turning a $17,839 profit on his trading activity after he did not appear at the event.
Santos has not been quiet about the situation
Santos took to X to call Kalshi “an unserious company” and labeled the ban “frivolous nonsense.” In a separate post, he wrote, “thanks for the lifetime ban from your gambling platform,” and added, “Let’s see how much longer you guys are around for.” Previously, in March, he addressed the controversy on his podcast by stating, “I guess people lost money.” He further remarked, “Some people made unexpected money. That’s to show you how fragile these markets are.”
This development follows a federal investigation by the Commodity Futures Trading Commission, which resulted in Santos agreeing to pay $35,000 to settle the matter one month ago. That investigation previously led the rival platform Polymarket to cut ties with him in June. Santos, who was sentenced to seven years in prison after pleading guilty to fraud and identity theft in 2024, was granted clemency by President Donald Trump after serving 84 days. President Trump had called Santos a “rogue” but noted that he did not deserve a harsh sentence.
Kalshi also announced enforcement actions against several other individuals on Monday. North Carolina congressional candidate Laurie Buckhout received a three-year ban and a $2,589 fine after admitting to placing bets of less than $1,000 on her own campaign.
Buckhout described the incident as a “dumb mistake” in a statement, saying, “I bet on myself. Literally. It was a dumb mistake, and as soon as I learned there was an issue, I worked to make it right.” She added, “Safe to say my career as a Kalshi trader was short-lived.”
Additional three-year bans were issued to Stephen Cloobeck, who ran for California governor, and Ben Midgley, who competed for the GOP nomination for Maine governor. Both men had placed bets on their own candidacies. Midgley stated he viewed the site as a novelty and was unaware that candidates were prohibited from supporting themselves. He mentioned that he had no winnings and made a charity donation to comply with company policies.
Unlike the permanent ban issued to Santos, these individuals received temporary bans because they cooperated with the probe conducted by Kalshi.
Published: Aug 31, 2026 05:15 pm