Prediction market startup Kalshi permanently bans ex-US lawmaker Santos from trading

Prediction market startup Kalshi has permanently barred former U.S. congressman George Santos from its platform, imposing a penalty of $71,356 for suspected insider trading, according to a statement released on Monday. The company's compliance department concluded there was reasonable cause to believe Santos engaged in illicit trading activities.

This decision follows a rise in suspicious trading activity on Kalshi and Polymarket, platforms that have been facing increasing scrutiny from regulators and law enforcement. Kalshi had reported Santos to the U.S. Department of Justice in June following the detection of suspicious trading on his account. Santos, who was expelled from Congress over fraud and identity theft, had his prison sentence of over seven years commuted by former U.S. President Donald Trump last year.