The Commodity Futures Trading Commission has officially fined former congressman George Santos 35,000 dollars. This penalty stems from his activity on the prediction market platform Kalshi during the lead-up to the February State of the Union address. Regulators determined that Santos misled the public about his plans to attend the event to manipulate market prices in his favor.
Evidence shows that Santos posted messages on social media suggesting he would attend the speech, which influenced the contract prices on the platform. By creating this false impression, he generated over 17,500 dollars in profit. In addition to the financial penalty, the agency banned him from trading on the platform for three years.
While his legal counsel stated that Santos intends to settle the matter and move on, the former representative remains vocal about his disapproval. He has publicly attacked Kalshi, calling for the platform to be reclassified as a gambling operation and requesting that its leadership face consequences. The dispute underscores ongoing regulatory questions regarding political prediction markets and the individuals who participate in them.