George Santos pays $35,000 to settle suspicious Kalshi trades
Former New York Congressman George Santos agreed to a settlement with the Commodity Futures Trading Commission (CFTC) involving a $35,000 fine and the relinquishment of over $17,500 in profits from suspicious trades on prediction marketplace Kalshi. The inquiry centered on Santos’s insider trading related to a bet he placed on whether he would attend President Trump’s State of the Union address, which he ultimately did not attend.Santos profited tens of thousands of dollars from the trade, prompting the CFTC to impose a three-year trading ban, though Santos’s lawyer emphasized he did not admit any wrongdoing.
The incident arose after Santos publicly posted that he would attend the State of the Union,than placed a bet indicating he would not,leading to profitable returns when he did not appear. Kalshi flagged the trades to authorities, and the company indicated it may pursue its own enforcement actions. Santos, who previously gained notoriety for allegedly falsifying much of his background, faced multiple allegations of financial misconduct, including embezzlement, illegal benefits, and lying on disclosures, which led to his expulsion from Congress in 2023. After pleading guilty to wire fraud and identity theft,Santos was sentenced to over seven years in prison-a sentence later commuted by former President Trump.
Former New York Republican Rep. George Santos on Friday agreed to a multi-thousand-dollar settlement with the government after a federal agency investigated him for suspicious trades on prediction marketplace Kalshi.
Santos is paying $35,000 in his settlement with the Commodity Futures Trading Commission, following allegations he engaged in insider trading on whether he would attend President Donald Trump’s State of the Union speech in February. CFTC said Santos agreed to pay a civil fine of $17,500 and to relinquish over $17,569 in profits he gained from unlawful trading. Santos’ lawyer said the settlement with the CFTC should not “be mistaken for admission of any wrongdoing,” after the agency imposed a three-year trading ban on Santos.
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“Mr. Santos has agreed to resolve the CFTC’s inquiry and to put this matter behind him. Critically, and consistent with how these regulatory matters are commonly resolved, Mr. Santos has settled without admitting any of the Commission’s allegations, findings, or conclusions,” attorney Joseph Murray said in a statement. “He chose a prompt, practical resolution, rather than protracted, costly litigation, and that choice should not be mistaken for admission of any wrongdoing, because it is not one.”
The development comes after Santos had made a public post that he would attend the State of the Union, allegedly placed a bet that he would not be there, and then did not attend.
Santos profited tens of thousands of dollars from the trade, as his social media post prompted users to place high-value bets that the former congressman would attend, according to reports. Kalshi then reportedly flagged his bets to the government, prompting CFTC’s investigation.
At the time, Santos dismissed accusations that he manipulated Kalshi.
“I guess people lost money,” he said on his podcast in March. “Some people made unexpected money. That’s to show you how fragile these markets are.”
Kalshi confirmed Friday that it flagged the trades for the CFTC.
“Kalshi will also pursue its own enforcement action for violating exchange rules, and if monetary penalties are recovered, we’ll work to reimburse affected traders,” the company said in a statement.
Santos is a former Congressman from New York who made waves during his time in the House for appearing to falsify much of his life story.
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He was expelled from the House after serving for less than a year in 2023, following accusations that he embezzled contributions from supporters, illegally obtained unemployment benefits, and lied on financial disclosures. The House Ethics Committee also said it had uncovered evidence that Santos stole money from his own campaign and used it to buy Botox, go on shopping sprees at Sephora and Hermes, and pay for OnlyFans subscriptions.
Upon his resignation from Congress, Santos was sentenced in April 2025 to more than seven years in prison after pleading guilty to charges of wire fraud and aggravated identity theft. Trump later commuted his sentence in October, 2025, conceding that Santos was “somewhat of a rogue,” but that “there are many rogues throughout our Country that aren’t forced to serve seven years in prison.”
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