Ex-GOP Rep. George Santos Slapped with $35,000 CFTC Fine and Three-Year Trading Ban Over Kalshi Event Bets

Last updated: August 1, 2026 7:08 am

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Former Republican Congressman George Santos has been ordered by the Commodity Futures Trading Commission (CFTC) to pay $35,000 in penalties and disgorgement for illicit trading on Kalshi event contracts. The ruling also imposes a three-year ban on trading after Santos profited from wagers, including one related to his own attendance at the State of the Union address. He has agreed to the settlement without admitting guilt.

The financial regulatory net has tightened around former Republican Congressman George Santos, as the Commodity Futures Trading Commission (CFTC) announced a significant penalty and a trading ban. Santos has been ordered to pay a total of $35,000 stemming from charges related to unlawful trading on Kalshi event contracts, including one particularly audacious wager on his own attendance at the State of the Union address.

A Three-Year Ban and Financial Repercussions

On Friday, the CFTC declared that Santos would face a three-year prohibition from trading in addition to a civil monetary penalty of $17,500. Furthermore, he must disgorge the $17,569.98 in profits he accrued from these illicit trades. Santos has agreed to the settlement, committing to refrain from future violations of the Commodity Exchange Act and other CFTC regulations. His lawyer, Joseph Murray, stated in a social media post on X (formerly Twitter) that Santos settled "without admitting any of the Commissions allegations, findings, or conclusions," aiming to put the matter behind him.

Profiting from Predictable Posts

The heart of the CFTC's findings lies in Santos's February trading activities on Kalshi, an event contract market. One specific contract questioned whether he would attend the State of the Union. Prior to the address, Santos posted on X, stating, "I'm going to be there for the State of Union in the gallery, guys." Ironically, he later posted that he was watching from the airport the following day. The CFTC asserted that these social media updates directly influenced the SOTU contract prices in a direction favorable to Santos's positions, enabling him to pocket over $17,500.

George Santos arriving at federal courthouse

George Santos, previously expelled from the U.S. House of Representatives, arrives for a sentencing hearing at Central Islip Federal Courthouse in Central Islip, New York, on April 25, 2025.

Shannon Stapleton | Reuters

A History of Legal Troubles

This latest regulatory action adds another chapter to Santos's extensive legal woes. He was previously sentenced to 87 months in prison for wire fraud and aggravated identity theft. However, his sentence was commuted last fall by President Donald Trump.

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