Kalshi bans George Santos for life over insider trading on prediction markets

Prediction market platform Kalshi has issued its first lifetime trading ban to former US Representative George Santos for using insider information to bet on event contracts tied to his own actions. The company also suspended US House candidate Laurie Buckhout for three years over similar violations.

Kalshi, a platform where users bet on the outcome of real-world events, announced the penalties on Friday following investigations into trades that could be influenced by the individuals involved.

Penalties and violations

Santos received a permanent ban and a $71,356 fine for trading on contracts related to his attendance at the 2026 State of the Union address. Buckhout, a Republican running in North Carolina’s 1st congressional district, was suspended for three years and fined $2,590 after betting on her own election chances. Kalshi’s rules prohibit anyone with influence over an event’s outcome from trading on related contracts.

The platform noted that Buckhout cooperated with the investigation, while no such statement was made about Santos.

Reactions and context

Santos called Kalshi an “unserious company” in a social media post, while Buckhout described her actions as a “dumb mistake.” Despite her suspension, Buckhout remains a candidate in the 2026 midterm elections. As of Tuesday, Kalshi still listed event contracts for her race, giving her a 41% chance of winning against Democratic incumbent Don Davis.

The bans come as prediction markets face scrutiny from US regulators over concerns about manipulation. Earlier this year, a teleprompter operator for former President Donald Trump was fined $172,000 by the Commodity Futures Trading Commission (CFTC) for trading on Kalshi contracts tied to Trump’s speeches.

Regulatory backdrop

Kalshi and similar platforms are involved in legal battles with state gaming authorities, which argue that some event contracts amount to illegal betting. The CFTC, however, claims exclusive jurisdiction over prediction markets and has taken emergency action to block state attempts to restrict them, including a recent move against New York’s efforts to bar Kalshi from offering contracts on sports and elections.

Sources

• Cointelegraph