jili tutorial

Kalshi Penalizes Political Candidates in Five New Enforcement Cases

By jili tutorial · September 2, 2026

Kalshi Penalizes Political Candidates in Five New Enforcement Cases

Exchange Cracks Down on Self-Trading, Market Manipulation, and Account Misuse

Kalshi has revealed five new disciplinary actions against traders who violated the prediction market exchange’s rules. The cases include former U.S. Rep. George Santos, three political candidates who traded on their own election races, and one trader accused of improper account access.

Financial penalties in these cases ranged from $2,589.96 to $71,356. Four traders received suspensions lasting between one and three years, while Santos was permanently banned from the platform.

These actions add to a growing wave of enforcement in the prediction market space. Just last week, the Commodity Futures Trading Commission (CFTC) ordered a former White House employee to pay approximately $172,000 for trades based on nonpublic information. Federal authorities are also reportedly preparing additional cases.

Three Political Candidates Traded on Their Own Elections

Three political candidates purchased contracts linked to races in California, North Carolina, and Maine. Since each individual was actively running for office in the race tied to their contracts, Kalshi determined they had direct influence over the underlying events—making such trading a violation of exchange rules.

California Gubernatorial Candidate Stephen Cloobeck

The largest penalty went to Stephen Cloobeck, a candidate in California’s 2026 gubernatorial race. Kalshi imposed a $31,770 fine and a three-year suspension after finding that Cloobeck purchased approximately $10,000 worth of contracts connected to his own candidacy.

North Carolina’s Laurie Buckhout

In North Carolina, congressional candidate Laurie Buckhout bought fewer than $1,000 in contracts tied to her own election. She received a $2,589.96 penalty and a three-year suspension.

Maine’s Ben Midgley

Maine gubernatorial candidate Ben Midgley also purchased under $1,000 in contracts related to his candidacy. He was hit with a $5,434.30 fine and a three-year suspension.

All three candidates cooperated with Kalshi’s investigations and agreed to settle their cases.

Kalshi Permanently Bans George Santos

The most serious enforcement action involved former congressman George Santos. Kalshi accused him of manipulating contracts tied to his attendance at President Donald Trump’s State of the Union address.

According to the exchange, Santos placed a series of significant trades before making public statements about whether he would attend the event. Some of these statements were allegedly false or misleading and intended to move the price of contracts he planned to purchase.

Kalshi reported that Santos generated $17,839.57 in profits from the markets. The exchange permanently banned him and imposed a $71,356 penalty.

This action is separate from a CFTC settlement reached in late July. In that case, the federal regulator ordered Santos to disgorge $17,569.98 and pay a $17,500 civil penalty related to the same State of the Union trading activity.

Trader Penalized for Improper Account Access

Kalshi also resolved a disciplinary case against trader Eric Park. The exchange found that Park improperly accessed another user’s account and engaged in prohibited trading through his own account.

Park was required to disgorge $14,472.65 and pay an additional $7,342 penalty. Kalshi also issued a one-year suspension, which the notice confirms has already been served. The exchange noted that Park cooperated with the investigation and settled without admitting or denying the findings.

Perez Case Highlights Broader Enforcement Push

These five disciplinary actions follow a separate Kalshi settlement with Gabriel Perez, a former White House teleprompter operator. Perez was accused of trading mention contracts on President Trump’s speeches using advance access to nonpublic information.

Kalshi determined the activity violated its prohibition on insider trading and suspended him for three years. The case was tied to a separate CFTC settlement announced last week.

Perez agreed to disgorge $107,539.02, pay a $65,000 civil penalty, and accept a three-year trading ban. According to Kalshi’s settlement, $91,998.91 of the disgorgement will come from funds held in his Kalshi account.