Kalshi bans George Santos, suspends Laurie Buckhout over insider bets

Prediction market platform Kalshi has imposed its first lifetime ban on former US Representative George Santos and issued a three-year suspension to Republican candidate Laurie Buckhout. The actions follow investigations into their use of insider information for trading on event contracts.

Santos was permanently suspended from trading and fined $71,356. Buckhout received a three-year suspension and a $2,590 penalty. Kalshi's rules prohibit individuals from trading on contracts where they have direct or indirect influence over the outcome of the underlying event.

Buckhout, running for North Carolina's 1st congressional district, was trading on contracts related to her own election. Santos engaged in trading activity concerning markets tied to his attendance at the State of the Union address. Buckhout reportedly called her actions a "dumb mistake," while Santos dismissed Kalshi as an "unserious company."

These crackdowns occur as prediction market platforms face scrutiny from lawmakers over potential manipulation. The Commodity Futures Trading Commission (CFTC) is also involved in legal disputes regarding jurisdiction over such markets.