Ex-congressman George Santos banned from betting platform for life

ByFrancisco Velasquez Business reporter, Reporting fromNew York.

Key points

• In July, Santos agreed to pay $35, 000 to settle a federal investigation by the Commodity Futures Trading Commission into his State of the Union trades.
• Kalshi, alleging Santos applied non-public information to place bets, issued a penalty of $71, 356 (£38, 000).
• His comments moved contract rates, and he ultimately earned $17, 839.57 from the trades.
• In 2025, President Trump ordered the release of Santos.
• He embellished much regarding his biography in the run-up to his election to Congress in 2022.

Prediction-market operator Kalshi has permanently barred former US congressman George Santos from trading on its platform.

Notably, the firm alleged that Santos. This person was expelled from Congress after a series of fraud and identity-theft charges, placed bets in February related to his own attendance at President Donald Trump's State of the Union address, according to a notice of disciplinary action.

Kalshi remarked its compliance team concluded his activity demonstrated signs of insider dealing, prompting the lifetime ban. It remarked it was acting independently without waiting for external enforcement action.

Santos on X thanked Kalshi for the ban and remarked "Let's see how much longer you guys are around for". The BBC has contacted Santos for comment.

In 2025, President Trump ordered the release of Santos. This person had been sentenced to a seven-year prison term for wire fraud and identity theft. He had served three months.

Notably, the disciplinary moves land at a moment when prediction markets – which allow users to wager on outcomes ranging from elections to economic indicators – are facing heightened scrutiny.

Both Kalshi and rival Polymarket have documented an uptick in unusual trading patterns, forcing platforms to strengthen monitoring systems and respond more aggressively to potential misconduct.

Kalshi remarked Santos's case was referred to federal authorities earlier this summer after internal systems flagged suspicious behaviour linked to his account.

Meanwhile, the firm stated the case centered on his trades in a market tied to whether he would attend Trump's address – an event he could directly influence.

According to the firm, its compliance team identified he placed a series of sizeable bets between 2 and 25 February, some of which were based on false or misleading public statements regarding his aims.

Santos has denied wrongdoing in various matters but has admitted to stealing identities of almost a dozen residents, including next of kin. He pleaded guilty to wire fraud and aggravated identity theft and served three months in prison before Trump commuted his sentence last year.

He embellished much regarding his biography in the run-up to his election to Congress in 2022. The former lawmaker was only the sixth in US history to be expelled from Congress.

In practice, the Kalshi episode underscores the growing compliance burden facing prediction markets as they attract more users and move closer to mainstream products. Regulators have signaled that platforms will be projected to meet higher standards as the industry matures, particularly when political or economic events are involved.

Santos, who was expelled from Congress after a series of fraud and identity-theft charges, has remained a polarising figure in US politics.

His criminal conviction led to a prison sentence of more than seven years. It trump afterwards commuted. Santos has denied wrongdoing in various matters, but has admitted to stealing identities of almost a dozen residents, including next of kin.

For now, ex-congressman George Santos banned from betting platform for life remains the part of the story worth watching, and further updates are likely as more details are confirmed.