George Santos Settles for $35,000 in Kalshi Trading Case

WHO:

ABC News - George Santos, a former Congressman from New York.

ABC News - Joseph Murray, Santos’ lawyer.

ABC News - Commodity Futures Trading Commission (CFTC).

ABC News - Kalshi, the prediction marketplace.

ABC News - Trump, referenced as President Donald Trump.

WHAT:

ABC News - Santos agreed to pay a civil penalty of $17,500 and forfeit an additional $17,570 in profits from unlawful trading.

MS NOW - Santos is temporarily barred from trading on Kalshi for three years.

Newser - The federal probe into Santos' Kalshi trading led rival online prediction platform Polymarket to cut ties with him in June.

ABC News - Santos stated that he chose a "prompt, practical resolution" to avoid "protracted, costly litigation."

ABC News - Santos' lawyer, Joseph Murray, emphasized that the settlement should not be mistaken for an admission of wrongdoing.

ABC News - Santos commented on the situation, saying, "I guess people lost money. Some people made unexpected money. That’s to show you how fragile these markets are."

MS NOW - The CFTC's investigation into Santos was prompted by unusual trading activity that Kalshi flagged and referred to federal authorities in June.

Bloomberg Markets - Santos agreed to pay more than $35,000 to settle allegations he manipulated a wager on prediction market platform Kalshi about whether he’d attend the 2026 State of the Union.

The Washington Post - The Commodity Futures Trading Commission (CFTC) stated that Santos engaged in “manipulative activity” in trades regarding his attendance at the State of the Union address.

ABC News - Santos stated he did not admit to wrongdoing in the settlement, emphasizing that his decision was a "prompt, practical resolution" to avoid costly litigation.

ABC News - Kalshi plans to pursue its own enforcement action and work to reimburse traders if monetary penalties are recovered.

ABC News - Santos' lawyer, Joseph Murray, claimed that Santos had a "genuine intention" to attend the State of the Union and did not conceal his change of plans.

ABC News - Santos agreed to pay $35,000 to settle a federal investigation into his trades on Kalshi.

ABC News - The settlement includes more than $17,000 Santos earned from unlawful trading and a fine of $17,500.

ABC News - Santos is subject to a three-year trading ban imposed by the CFTC.

Bloomberg Markets - Santos manipulated a wager on whether he would attend the 2026 State of the Union.

WHERE:

ABC News - The investigation pertains to trades made on the prediction marketplace Kalshi.

WHEN:

ABC News - Santos had plans to attend the State of the Union in February.

ABC News - Santos is set to appear on Fox’s reality contest “Special Forces: World’s Toughest Test” in the fall.

ABC News - Santos was granted clemency by Trump last year.

WHY:

Bloomberg Markets - The CFTC concluded that Santos engaged in “manipulative activity” in his trades regarding his attendance at the State of the Union address.

ABC News - Santos' lawyer asserted there was "absolutely no intent to deceive any person, nor intent to manipulate any market."

ABC News - Santos stated he settled to “put this matter behind him” and did not admit to wrongdoing.

ABC News - The CFTC's investigation was prompted by Santos betting against his own attendance at the State of the Union.

HOW:

ABC News - Santos communicated his intention to attend the State of the Union by booking a hotel and plane ticket before a winter storm affected his plans.

ABC News - Kalshi reported Santos to regulators, leading to the federal probe.

(UPDATED August 1, 2026 19:19 UTC)

Santos has agreed to pay a civil penalty of $17,500 and forfeit an additional $17,570 in profits from unlawful trading, while also being temporarily barred from trading on Kalshi for three years. This decision follows a federal probe that found Santos engaged in “manipulative activity” related to his attendance at the State of the Union address, prompting rival platform Polymarket to cut ties with him in June. The investigation by the CFTC has led to significant consequences for Santos in the trading world.

(UPDATED August 1, 2026 13:23 UTC)

Santos has opted for a prompt and practical resolution to avoid lengthy and costly litigation, according to his lawyer, Joseph Murray, who stressed that this settlement does not imply any admission of wrongdoing. In his comments, Santos acknowledged the situation, noting that while some people lost money, others unexpectedly profited, highlighting the fragility of these markets. This investigation by the CFTC was initiated after unusual trading activity was flagged and referred to federal authorities back in June.

(UPDATED August 1, 2026 05:58 UTC)

Santos has agreed to pay over $35,000 to settle allegations of manipulating a wager on the prediction market platform Kalshi concerning whether he would attend the 2026 State of the Union address. The Commodity Futures Trading Commission has stated that Santos engaged in what they describe as "manipulative activity" in trades related to his attendance at the event. This settlement comes amid increasing scrutiny of trading practices surrounding political events.

(UPDATED August 1, 2026 02:52 UTC)

Santos has stated that he did not admit to any wrongdoing in his recent settlement, describing it as a "prompt, practical resolution" to avoid expensive litigation. His lawyer, Joseph Murray, emphasized that Santos had a "genuine intention" to attend the State of the Union and did not intend to deceive anyone or manipulate any market, noting that he had booked a hotel and plane ticket before a winter storm disrupted his plans. Meanwhile, Kalshi is planning to take its own enforcement action and aims to reimburse traders if any monetary penalties are recovered.

(UPDATED August 1, 2026 00:17 UTC)

George Santos, a Congressman from New York, has agreed to pay $35,000 to settle a federal investigation into his trades on the prediction marketplace Kalshi, which includes over $17,000 he earned from unlawful trading and a fine of $17,500. As part of the settlement, Santos is now subject to a three-year trading ban imposed by the Commodity Futures Trading Commission after he manipulated a wager on whether he would attend the 2026 State of the Union. Santos stated he settled to “put this matter behind him” without admitting to any wrongdoing, following a federal probe initiated when he bet against his own attendance at the event.