Kalshi Suspends George Santos for Insider Trading on State of the Union Attendance

Kalshi, a prediction market platform, has permanently suspended former U.S. Congressman George Santos for insider trading related to his attendance at the State of the Union address. The exchange found that Santos manipulated contracts tied to his own attendance, violating its rules against trading on events he could influence.

Between February 2 and February 25, Santos executed a series of large trades in anticipation of the event, making public statements about his attendance that Kalshi deemed false or misleading. These statements were aimed at influencing the prices of Yes and No contracts he intended to purchase, ultimately affecting their market value.

Santos earned $17,839.57 from this trading activity. In response, Kalshi imposed a penalty of $71,356 and permanently barred him from accessing the platform, effective August 28. The exchange highlighted that its rules prohibit members from trading when they possess material nonpublic information or influence an underlying event.

In addition to Santos, Kalshi has also penalized three other political candidates for similar infractions related to betting on their own races. North Carolina Republican candidate Laurie Buckhout acknowledged her mistake and received a fine and a three-year suspension.