Key facts
- George Santos agreed to pay $35,000 to settle a federal investigation into his trading on the prediction marketplace Kalshi.
- The Commodity Futures Trading Commission (CFTC) stated Santos earned over $17,000 from unlawful trading and imposed a $17,500 fine.
- The CFTC also issued a three-year trading ban against Santos.
- The trades involved betting on whether Santos would attend President Donald Trump's State of the Union address.
- Santos' lawyer stated the settlement was a prompt resolution and not an admission of wrongdoing.
Former Congressman George Santos has agreed to pay $35,000 to settle a federal investigation into his trading activities on the prediction marketplace Kalshi. The Commodity Futures Trading Commission (CFTC) stated that Santos earned over $17,000 from unlawful trading and imposed a fine of $17,500, bringing the total settlement to $35,000. Additionally, the CFTC issued a three-year trading ban against Santos.
The trades in question occurred around President Donald Trump's State of the Union address in February, where users could bet on whether Santos would attend. Santos' lawyer, Joseph Murray, stated that the settlement was a prompt resolution to avoid costly litigation and should not be mistaken for an admission of wrongdoing.
Kalshi, the platform where the trades took place, had reported Santos to regulators. The company indicated it would pursue its own enforcement action and seek to reimburse traders with recovered penalties. Santos, who was expelled from the House of Representatives in 2023, previously commented on the market volatility, noting that "people lost money" and "some people made unexpected money."