Huo Xing Finance reports that former U.S. Representative George Santos has reached a settlement with the U.S. Commodity Futures Trading Commission (CFTC). Under the order, Santos must return $17,569.98, pay a civil penalty of $17,500, and be prohibited from trading with any CFTC-registered entity for three years. The CFTC determined that Santos made misleading public statements and omitted material facts while trading event contracts on the prediction market platform Kalshi related to whether he would attend President Donald Trump’s State of the Union address. Santos did not admit to the factual findings or conclusions in the order. Trading records show that Santos opened an account on February 11 and traded only this contract: he first bought the "Yes" contract, profiting $3,448.43, then, after flights and trains were canceled, continued publicly stating he would attend and bought the "No" contract, ultimately realizing a profit of $14,390.57 on this position. Kalshi stated it identified the activity, froze the account, and provided evidence to the CFTC.
Former U.S. Rep. George Santos settles with the CFTC over Kalshi market manipulation for $35,100.
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Summary
Former U.S. Representative George Santos has settled with the CFTC over alleged manipulation on Kalshi, paying $35,100. He must repay $17,569.98, pay a $17,500 penalty, and is banned from trading on CFTC-registered platforms for three years. The CFTC accused him of making misleading public statements to influence trading activity related to his attendance at Trump’s State of the Union address. Santos first purchased Yes contracts for a $3,448.43 profit, then bought No contracts after making public comments, netting $14,390.57. Kalshi froze his account and shared evidence with regulators.
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