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Former Congressman George Santos Becomes First Person Permanently Banned from Kalshi

By jili tutorial · September 4, 2026

Former Congressman George Santos Becomes First Person Permanently Banned from Kalshi

Kalshi has permanently banned former U.S. Congressman George Santos from trading on its prediction market, the company announced late last week. The decision follows an investigation into his alleged manipulation of contract prices tied to his possible attendance at the 2026 State of the Union address. Santos was also fined $71,356.

Kalshi Bans Santos After State of the Union Investigation

How Santos Manipulated Market Prices

According to Kalshi’s compliance department, Santos placed a series of large trades throughout February 2026 involving contracts that paid out based on whether he attended the State of the Union address on February 24. The exchange then accused Santos of making public statements about his attendance—some of which were false or misleading—with the deliberate intent of influencing the price of “Yes” and “No” contracts.

Kalshi said these statements successfully moved market prices, allowing Santos to pocket $17,839.57 in profits from the trades. Once the suspicious activity was detected, Kalshi froze Santos’ account and referred the matter to federal authorities, as reported by NPR.

Santos Responds with Criticism on X

Santos reacted to the lifetime ban with a series of posts on X, criticizing both the exchange and the decision itself.

“Hey @Kalshi thanks for the lifetime ban from your gambling platform. Let’s see how much longer you guys are around for.” — George Santos (@Georgesantos) August 31, 2026

He went further, calling Kalshi an “unserious company” and claiming it “violates its own notices and deadlines.”

“By the way @Kalshi is such an unserious company it violates its own notices and deadlines lol. On August 7th they gave us a 30 day notice and today they leaked/ announced once again their frivolous nonsense. Leaking and attention seeking seem to be the M/O of this…” — George Santos (@Georgesantos) August 31, 2026

Kalshi Also Disciplines Other Political Candidates

Santos’ case was the most severe of four disciplinary settlements announced by Kalshi, which has faced increasing scrutiny over insider knowledge risks and the ability of participants to influence event outcomes. He is not the only political figure penalized for attempting to game the prediction market.

Each settlement involved cooperation with Kalshi’s investigation.

Why Did Santos Face the Harshest Penalty?

What set Santos apart was not just trading on his own event, but the exchange’s allegation that he actively issued false or misleading statements to alter prices and profited materially from doing so. That conduct violated additional rules, including prohibitions on manipulative conduct and failure to cooperate, elevating his punishment to a permanent ban and a considerably larger fine.

Kalshi enforced the penalties under multiple exchange rules designed to mirror federal market regulations. These include bans on trading when a participant can influence the outcome of an event, trading on material non-public information, and engaging in fraudulent or manipulative practices. The sanctions, effective August 28, 2026, bar Santos from any direct or indirect trading access on Kalshi.

The platform’s Rule 5.17(z), cited in all the matters, strictly prohibits trading in contracts where participants have decision-making power or can otherwise influence the underlying event—regardless of the magnitude of that influence.

Earlier this year, fellow prediction market platform Polymarket also ended its paid relationship with Santos amid a Department of Justice investigation into whether he placed a wager on his appearance at the same State of the Union address.

Santos’ legal troubles are extensive. A federal judge sentenced him to 87 months in prison last April on felony wire fraud and check fraud charges. After Santos served several months in 2025, former President Donald Trump granted him clemency, leading to his immediate release. Shortly after being released, Santos began working as an influencer for Polymarket.

Kathryn Evans covers bite-sized breaking news with a primary focus on EMEA and U.S. legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan—long before Hollywood came calling.