# Kalshi Bans George Santos for Life Former US Representative fined $71,356 for trades on prediction market platform. - **Source:** [Bitcoin News](https://brifing.si/source/d8aeaf1e-9839-4dad-9d25-7a6bf3fbeef8) - **Published:** 2026-09-01 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/ee91ada2-3fa5-4101-a800-227c9780e39f ## Kalshi's Historic Decision Prediction market platform Kalshi imposed a lifetime ban on former US Representative George Santos and fined him $71,356. This marks the first lifetime ban in the company's history. The ban was issued due to Santos's trades related to the State of the Union address. Kalshi claimed Santos did not cooperate with the investigation, but this allegation was contradicted by the CFTC. ## Contradictory Statements with CFTC The Commodity Futures Trading Commission (CFTC) formally acknowledged in July that Santos cooperated with the investigation. Santos had settled with the CFTC by paying $35,069.98 and accepting a three-year trading ban. However, Kalshi's ban and fine contradict the CFTC's findings. Santos criticized Kalshi's decision on social media, calling the company 'unserious.' ## Other Bans and Penalty Details Kalshi also imposed three-year bans on four other individuals. Stephen Cloobeck was fined $31,770 for trades worth around $10,000 related to his aborted California gubernatorial run. Ben Midgley paid a $5,434.30 fine for trades under $1,000 tied to his Maine primary bid. Both stated they cooperated with the investigation. Laurie Buckhout was fined approximately $2,589. ## Santos's Trades and Conflicting Dates Kalshi claimed Santos conducted trades between February 2 and February 25, while the CFTC stated Santos opened his account on February 11 with $1,000 and made his first trade the next day. Santos accumulated 30,874 'Yes' contracts before reversing into 23,855 'No' contracts. Nine days of Kalshi's window predate Santos's account opening. ## Santos's Defense and Social Media Reaction Santos criticized Kalshi's decision on social media, accusing the company of violating its own notices and deadlines. He claimed he received a 30-day notice on August 7, but the penalty took effect 21 days later. Santos wrote, 'Hey @Kalshi, thanks for the lifetime ban from your gambling platform,' questioning the company's future. ## Market Fragility and Impacts In March, Santos discussed the controversy on his podcast, stating some people lost money while others made unexpected gains. He said this showed how fragile these markets are. Kalshi had priced Santos's attendance at the speech at 75% before he failed to appear. ## CLARITY Act and Future Implications As August ends, the CLARITY Act faces a critical Senate test on September 15. This law could bring significant changes to the regulation of prediction markets. Santos's ban and other penalties may fuel debates on how these markets should be regulated. Kalshi's decision could set a precedent for other players in the industry. ## Conclusion and Industry Impact Kalshi's lifetime ban on George Santos has reignited debates over the regulation and oversight of prediction markets. Contradictory statements with the CFTC highlight transparency and trust issues in the industry. Santos's case demonstrates the fragility and susceptibility to manipulation in these markets, setting an important example for future regulations. ## Sources covering this story - https://news.bitcoin.com/igaming/an-unserious-company-santos-fires-back-at-kalshi-lifetime-ban/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._