Prediction market Kalshi announces lifetime ban against former Rep. George Santos
The prediction market Kalshi on Monday announced its first-ever lifetime ban against disgraced former Rep. George Santos, who previously settled a regulatory investigation into his trades with a hefty fine and a temporary ban from using prediction markets.
The platform also announced penalties against three political candidates who the site accused of wagering on their own races in violation of its insider trading rules.
Kalshi said Santos improperly manipulated the price of contracts on the platform by making public statements about his planned attendance at the State of the Union address earlier this year and then wagering on that contract.
Kalshi "found that Santos made these statements with the intent to manipulate the price of the Yes or No contracts that he intended to purchase. Ultimately, these statements did in fact manipulate the price of said contracts," according to Kalshi's regulatory filings.
Santos, on X, reacted to the ban by posting, "Hey @Kalshi thanks for the lifetime ban from your gambling platform. Let's see how much longer you guys are around for."
The Commodity Futures Trading Commission previously leveled its own penalties against Santos, including a disgorgement of his winnings and a $17,500 fine.
The other penalties announced Monday were levied against political candidates Ben Midgley, who ran as a Republican candidate for governor in Maine; Stephen Cloobeck, who briefly ran as a Republican for California governor; and Laurie Buckhout, who is running for Congress as a Republican in North Carolina against Democratic Rep. Don Davis.
Each purchased "event contracts" related to their own races, in violation of Kalshi's rules, the platform said Monday.
As candidates, all three "qualified as a decision maker for the contract and had direct influence on the outcome of the Underlying event," the platform wrote in regulatory filings. The exact nature of their wagers was not revealed in documents released Monday.
Kalshi said all three cooperated with its investigation.
Cloobeck, a billionaire real estate developer, "purchased approximately $10,000 worth of contracts related to his own candidacy," Kalshi wrote. "Under the terms of the settlement, Kalshi suspended Cloobeck from direct or indirect access to Kalshi for a period of three years and imposed a financial penalty of $31,770."
Midgley and Buckshot wagered less than $1,000 on the site and faced penalties of a few thousand dollars each, the platform said. Both were also suspended from the platform for three years.
Earlier this year, ABC News reported that Kalshi had penalized three other political candidates who had wagered on their own races.
