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Kalshi bans George Santos for life over alleged prediction market manipulation
Kalshi said Santos made large trades tied to whether he attended Trump’s most recent State of the Union, then issued statements to influence contract prices, with a fine of more than $70,000.
CoinDesk reports that prediction market platform Kalshi has issued its first lifetime trading ban, targeting ousted former U.S. Representative George Santos. Kalshi attributed the move to alleged manipulation involving trades tied to Santos’s own attendance at President Donald Trump’s most recent State of the Union address.
According to Kalshi, Santos placed large trades in markets where contract outcomes depended on whether he would attend the event. Kalshi said Santos then made public statements about his attendance in an effort to influence the price of the Yes and No contracts, which Kalshi described as including false or misleading claims. Kalshi said Santos ultimately bet on the conclusion that he would not attend.
CoinDesk also notes that around the same time, the Commodity Futures Trading Commission issued a penalty and ban against a former White House teleprompter operating after it placed bets on words it knew Trump planned to utter. The report adds that Polymarket is also reportedly focused on preventing bad actors from manipulating midterm election betting.
Kalshi said its action against Santos included the lifetime ban and a fine of more than $70,000. CoinDesk writes that Santos did not immediately respond to a request for comment.