Escalation: CFTC sanctions George Santos in $35k settlement

George Santos settled a case with the Commodity Futures Trading Commission over his Kalshi bets. He must give up $17,569.98 in profits and pay a $17,500 civil penalty. The order also imposes a three-year trading ban and a cease-and-desist.

The agency found that between February 12 and 25 he traded a Kalshi market about who would attend the State of the Union, including whether he himself would attend. While placing those bets, he posted on social media about his plans, making misleading statements and leaving out changes that mattered. Prices then moved in ways that favored his positions, letting him earn more than $17,500.

Kalshi referred the activity to regulators and says it will pursue its own enforcement action. It plans to seek reimbursement for affected traders if it recovers money.

AI-synthesized from multiple reported sources