Former Republican Representative George Santos has hit back after receiving a lifetime ban on prediction market platform Kalshi. On Monday, Kalshi said it had permanently barred Santos from its platform and imposed a $71,356 penalty following a Commodity Futures Trading Commission case tied to trades on his own attendance at President Donald Trump's State of the Union address. Regulators alleged Santos profited from contracts predicting he would miss the event while posting content that suggested he still planned to attend.
It marks the first time Kalshi has issued a lifetime ban, according to a company spokesperson, and its compliance department had imposed a penalty of $71,356, according to a filing on its website. Santos settled the CFTC case in July, agreeing to pay more than $35,000. His attorney said at the time that the settlement was made to avoid the cost of prolonged litigation and did not constitute an admission of wrongdoing.
Responding to the lifetime ban on X, Santos mocked the company, writing: "Hey @Kalshi thanks for the lifetime ban from your gambling platform. Let's see how much longer you guys are around for." Kalshi said the permanent suspension was also influenced by Santos' failure to participate in the company's internal review process. Santos can appeal the decision to the CFTC.
The former New York congressman, who was expelled from Congress in 2023 and later pleaded guilty to federal fraud-related charges, is now at the center of one of the highest-profile insider trading cases to emerge from the fast-growing prediction market industry. Newsweek contacted Kalshi, Santos and his attorney via email on Monday. This is a developing story; updates will follow.
Extract — continue reading at the source.
