Ex-congressman George Santos banned from betting platform for life

Prediction market platform Kalshi has indefinitely banned former U.S. Representative George Santos from trading on its platform. According to a notice of disciplinary action, Santos, who was previously expelled from Congress due to fraud and identity theft charges, placed bets on February 2-25 in relation to his own attendance at President Donald Trump's State of the Union address.

Kalshi's compliance team determined his actions exhibited signs of insider trading, leading to the lifetime ban. The company stated it acted independently without awaiting external enforcement. Santos thanked Kalshi on social media, expressing doubt about the platform's longevity. In 2025, Trump ordered Santos' release from a seven-year prison term for wire fraud and identity theft; he served three months.

Santos later agreed to pay $35,000 to settle a federal investigation by the Commodity Futures Trading Commission stemming from the State of the Union trades. The disciplinary actions come as prediction markets face heightened scrutiny amid increasing unusual trading patterns. Both Kalshi and competitor Polymarket have reported a rise in suspicious activity, prompting platforms to bolster monitoring and take firmer action against potential misconduct.

Kalshi referred Santos' case to federal authorities this summer following internal alerts about abnormal behavior linked to his account. The investigation focused on a series of substantial bets made between February 2-25, some based on false or misleading statements about Santos' plans. Despite denying wrongdoing, Santos admitted to stealing identities of nearly a dozen individuals, including relatives, and pleaded guilty to wire fraud and aggravated identity theft.

He served only three months before Trump commuted his sentence. Santos embellished his background in the lead-up to his 2022 congressional election, becoming the sixth individual expelled from Congress. The Kalshi episode highlights the growing compliance challenges facing prediction markets as they expand their user base and approach mainstream status.

Regulators have indicated platforms will need to adhere to stricter standards as the industry matures, particularly when involving political or economic events.