Kalshi Bans Former Congressman George Santos for Life Over Insider Trading Allegations
Prediction market platform Kalshi has permanently banned former U.S. Rep. George Santos, citing likely insider trading related to his attendance at the State of the Union address.
The online prediction market platform Kalshi announced Monday that it has permanently banned former U.S. Rep. George Santos. The company concluded that Santos likely engaged in insider trading by profiting from bets placed against his attendance at the State of the Union address.
Kalshi's compliance department stated it had reasonable cause to believe Santos engaged in insider trading. This involved speculating on his attendance and ultimately turning a $17,839 profit by betting he would not attend.
This marks the first permanent ban in Kalshi's history. Other enforcement cases announced Monday resulted in temporary bans due to cooperation with the company's investigation. Santos also faces a $71,356 penalty.
Santos, who has been convicted of fraud, had previously discussed his intention to attend the address but was later reportedly delayed at the airport. Social media users accused him of orchestrating this to exploit the betting market. Santos has denied the allegations, calling Kalshi an "unserious company" and the ban "frivolous nonsense" on social media.