Ex-congressman George Santos banned from betting platform for life

Kalshi has permanently barred former US congressman George Santos from trading on its prediction‑market platform. The exchange alleged that Santos, who was expelled from Congress following a bid of fraud and identity‑theft charges, placed bets in February related to his own attendance at US President Donald Trump’s State of the Union address, according to an announcement of disciplinary action. Kalshi said its compliance team concluded his activity showed signs of insider dealing, prompting the lifetime ban, and added that it acted independently without waiting for external enforcement. Santos responded on X, thanking Kalshi for the prohibition and stating, “Let's spot however much longer you guys are around for.” The BBC has contacted Santos for comment. In 2025, Trump ordered the release of Santos, who had been sentenced to a seven‑year prison term for ligature fraud and identity theft; Santos had served three months of that sentence. In July, Santos agreed to pay $35,000 to settle a national probe by the Commodity Futures Trading Commission into his State of the Union trades. Kalshi, asserting that Santos used non‑public information to place bets, issued a penalty of $71,356 (£38,000). The disciplinary action comes as prediction markets—platforms that let users wager on outcomes ranging from elections to economic indicators—face heightened scrutiny. Both Kalshi and rival Polymarket have reported an uptick in atypical trading patterns, prompting the firms to strengthen monitoring systems and respond more aggressively to possible misconduct. Kalshi said Santos’s case was referred to national authorities earlier this summer after internal systems flagged suspicious behaviour linked to his account. The exchange said the case centred on his trades in a market tied to whether he would attend Trump’s address—an event he could directly influence. Its compliance team found that Santos placed a series of sizeable bets between 2 and 25 February, some of which were based on false or misleading national statements about his plans, according to the company. Those comments moved market prices, and Santos ultimately earned $17,839.57 from the trades. Santos has denied wrongdoing in various matters but has admitted to stealing the identities of about a dozen people, including next of kin. He pleaded guilty to ligature fraud and aggravated identity theft and served three months in prison before Trump commuted his sentence last year. He also embellished many details of his biography in the run‑up to his 2022 congressional election; the former lawmaker is only the sixth person in US history to be expelled from Congress. The Kalshi episode underscores the growing compliance burden on prediction markets as they attract more users and move toward mainstream products. Regulators have signalled that platforms will be expected to meet higher standards as the industry matures, particularly when governmental or economic events are involved. Santos, who was expelled from Congress following a bid of fraud and identity‑theft charges, remains a polarising figure in US politics. His conviction resulted in a prison sentence of more than seven years, which Trump earlier commuted. Santos continues to deny wrongdoing in various matters but has acknowledged stealing the identities of about a dozen people, including next of kin.