George Santos, the former US representative from New York, has received a lifetime ban from Kalshi, a prediction market platform. The company also fined him more than $71,000 over allegations that he attempted to manipulate market outcomes.
Kalshi announced the action on Wednesday, marking the first-ever permanent ban issued by the platform. The decision follows an internal investigation into Santos’s trading activity, which the company said violated its terms of service.
According to Kalshi, Santos engaged in coordinated trading patterns designed to influence the prices of political contracts. The platform’s rules prohibit users from placing bets with the intent to distort market signals or mislead other participants.
The fine covers the profits Santos allegedly gained through the scheme, along with additional penalties. Kalshi said it will donate the amount to a nonprofit focused on election integrity, though the specific organization was not named.
Santos has denied the allegations, claiming that his trades were part of a legitimate strategy. His representatives did not respond to requests for further comment, but he has previously criticized Kalshi’s enforcement actions as politically motivated.
This incident highlights the growing scrutiny on prediction markets, which allow users to bet on political events. Regulators and industry observers have raised concerns about market manipulation, especially as these platforms gain popularity during election cycles.
Kalshi said it is improving its monitoring systems to detect similar behavior in the future. The company also warned that other users could face permanent bans if they attempt to undermine market fairness.
Santos’s legal troubles continue to mount, as he already faces federal charges related to campaign finance fraud. The new penalty adds another layer to his ongoing controversies.
