Kalshi announces lifetime ban against former Rep. George Santos

Prediction market platform Kalshi on Monday announced its first-ever lifetime ban against disgraced former U.S. Representative George Santos. The platform also imposed penalties on three political candidates accused of wagering on their own races, violating insider trading rules. Santos manipulated contract prices by publicly stating his attendance at the State of the Union address, then betting on that outcome.

He reacted to the ban by accusing Kalshi of shortening its lifespan. Kalshi found his statements did indeed manipulate contract prices. The Commodity Futures Trading Commission had also penalized Santos, imposing a fine and requiring him to return winnings. Three other candidates, Ben Midgley, Stephen Cloobeck, and Laurie Buckhout, also faced penalties from Kalshi for betting on their own races.

Each purchased event contracts related to their respective races, an action that constituted insider trading violations. Cloobeck, a billionaire real estate developer, faced a three-year ban and a $31,770 fine. Midgley and Buckhout, who wagered less than $1,000, were suspended for three years and faced penalties of a few thousand dollars each. All three candidates cooperated with Kalshi's investigation.