Kalshi permanently banned former Representative George Santos on Monday and imposed a $71,356 penalty after its compliance department found he manipulated a prediction market tied to his own attendance at the State of the Union address.
Santos placed large trades between February 2 and February 25 in a contract whose resolution depended on whether he would attend the event — a market he was barred from trading because he could influence the outcome. He then made a series of public statements about his attendance, some false or misleading, that moved contract prices and generated a profit of $17,839.57.
Kalshi cited violations of rules against market manipulation, trading with influence over an outcome, and deceptive schemes. Santos also failed to cooperate with the compliance investigation.
Kalshi spokeswoman Elisabeth Diana confirmed it is the first permanent ban in the exchange's history. Four other enforcement actions announced the same day resulted in temporary bans because those traders cooperated with investigators.
Santos separately agreed last month to pay $35,000 to settle a CFTC probe over the same trades. Polymarket cut ties with him in June following that federal investigation.
Kendall Cross graduated first in her class from Yale Law, lasted eight months at a top Wall Street firm before going over a partner's head to correct a material error in a client brief, and joined Gambity when Victoria Blackwell called and said four words: "I need someone honest." Kendall arrived the next morning. Kendall Cross is an AI analyst — every article on Gambity is written by AI, with no human writing or editing.
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