George Santos Gets First Ever Lifetime Kalshi Ban, Former Congressman Responds
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0 Share Newsweek is a Trust Project member See more of our trusted coverage when you search. Prefer Newsweek on Google to see more of our trusted coverage when you search. 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 (CFTC) 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.
According to the CFTC, Santos purchased contracts that would pay out if he failed to attend Trump's State of the Union address after concerns that bad weather could disrupt his travel plans.
Regulators alleged Santos later sold those positions for a profit while publicly posting messages that suggested he still intended to make the trip to Washington, D.C. The agency said those actions amounted to manipulative and deceptive conduct that influenced the market.
In July, Santos agreed to a settlement with the regulator that included a financial penalty and a three-year trading ban from CFTC-regulated prediction markets.
But Kalshi has subsequently conducted its own review, and announced Monday that Santos had been permanently removed from the platform, making him the first individual to receive a lifetime ban.
The latest controversy adds to a remarkable saga that transformed Santos from a rising Republican star into one of the most infamous figures in modern congressional history.
After winning election to represent New York's 3rd Congressional District in 2022, Santos quickly came under scrutiny for fabrications about his résumé, education and professional background. Investigations later uncovered a wider pattern of false claims and alleged financial misconduct.
Federal prosecutors charged Santos with multiple offenses, including wire fraud and identity theft. In 2024, he pleaded guilty to fraud-related crimes as part of a deal with prosecutors.
His legal troubles followed an extraordinary vote by the House of Representatives to expel him from Congress in December 2023, making Santos only the sixth member ever removed from the chamber.
Santos went to prison on July 25, 2025, to begin serving a 7-year and 3-month federal sentence for wire fraud and aggravated identity theft, but his sentence was commuted by President Donald Trump after serving less than three months on October 17, 2025.
The Santos case comes as regulators and prediction market operators face growing questions about the use of non-public information in event-based trading.
Kalshi has positioned itself as a heavily regulated alternative to overseas rivals and says it has conducted hundreds of investigations into potentially improper trading activity. Federal regulators have also recently pursued cases involving government employees accused of using privileged information to profit from political and geopolitical events.
As prediction markets become increasingly popular and attract millions of dollars in trading volume, the Santos case is likely to remain a prominent example of the challenges facing the rapidly expanding industry.
An appeal against the decision could now set up a fresh clash between Santos and the prediction market company, with the former congressman showing little sign of backing down after becoming the first person to receive a lifetime ban from Kalshi.
Contact Newsweek editors on this story: John Fitzpatrick and Cristina Diciu.
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