On July 31, 2026, the state of New York filed a case against prediction market Kalshi, accusing the platform of running an illegal and unlicensed gambling operation and...
The Commodity Futures Trading Commission (CFTC) has ordered former New York Congressman George Santos to return profits from his illegal trading activity, pay an additional civil fine, and has banned Santos from trading for a 3-year period.
Initially, George Santos was investigated over insider trading on Kalshi in connection with trades tied to his attendance at the 2026 State of the Union address, after which the CFTC concluded that Santos had actually manipulated the contracts.
According to the settlement, Santos has been required to return $17,570 from the winnings on the unlawful trades, as well as pay a civil monetary penalty of $17,500. Although the former Congressman neither admitted nor denied the findings, he still agreed to a cease-and-desist order from future violations of CFTC regulations and the Commodity Exchange Act (CEA).
Santos’ attorney, Joseph Murray, shared:
“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. He chose a prompt, practical resolution rather than protracted, costly litigation, and that choice should not be mistaken for an admission of any wrongdoing, because it is not one.”
After the case was settled, Santos published multiple posts criticizing Kalshi and stressing that all 50 U.S. states must regulate the prediction market as a gambling platform.
