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Prediction market Kalshi imposes first-ever lifetime ban on former Congressman George Santos for insider trading

The prediction market platform Kalshi has issued a lifetime ban to former Congressman George Santos following an investigation into insider trading. Santos, who was expelled from Congress in 2023, was found to have placed bets on his own attendance at President Trump's State of the Union address. While Santos publicly stated he would attend the event, he had already wagered that he would not show up, ultimately earning over $17,000 in profit from the trades. Kalshi fined Santos $71,356 as part of the disciplinary action. The Commodity Futures Trading Commission also investigated the matter, resulting in a settlement where Santos paid $35,000 to return profits and a $17,500 fine. In addition to the ban on Santos, Kalshi took disciplinary action against several other political figures. Republican Congressional candidate Laurie Buckhout was suspended for three years and fined for betting on her own campaign. The administration announced a settlement with Gabriel Perez, former teleprompter operator for President Trump, for using advance notice of speeches to profit on mention markets. These actions highlight increasing scrutiny on prediction markets as they grow in popularity.

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