George Santos settles Kalshi trade probe over Trump speech bet

George Santos settled a federal case over Kalshi trades linked to Donald Trump's State of the Union address. The deal ends the regulator's probe with a payment and a three-year trading ban, even as he denies wrongdoing.Stock photo used for illustrationFormer US Congressman George Santos has agreed to pay USD 35,000 to settle a federal investigation into suspicious trades on prediction marketplace Kalshi, after he bet against his own plans to attend President Donald Trump's State of the Union address. The federal Commodity Futures Trading Commission said the settlement also includes a three-year trading ban on Santos.Santos said on Friday that he settled with the regulator to put the matter behind him, while not admitting any wrongdoing. His lawyer, Joseph Murray, said Santos chose a practical resolution instead of a long and expensive legal fight.In a statement shared by Santos on X, Murray said, "He chose a prompt, practical resolution, rather than protracted, costly litigation, and that choice should not be mistaken for admission of any wrongdoing, because it is not one." The commission said the settlement includes more than USD 17,000 that Santos earned from the unlawful trading, along with a fine of USD 17,500.Kalshi, which reported Santos to regulators, said it would also pursue its own enforcement action and work to reimburse traders if any monetary penalties are recovered. Before Trump's February speech, Santos had spoken frequently about his plans to attend. But minutes into the address, he posted on X saying he had been delayed at the airport and could not make it to Capitol Hill. Social media users then pointed out that Kalshi had placed the odds of Santos attending the address at close to 75 per cent. Santos dismissed the complaints at the time. "I guess people lost money," he said on his podcast in March. "Some people made unexpected money. That's to show you how fragile these markets are."The federal investigation into the Kalshi trading later led rival online prediction platform Polymarket to cut ties with Santos in June. On Friday, Murray said his client had a "genuine intention" to attend the State of the Union and had booked a hotel and plane ticket before a winter storm disrupted those plans. "Mr Santos concealed neither his intention to attend, nor his change of plans to not attend the SOTU, from anyone," Murray said. "There was absolutely no intent to deceive any person, nor intent to manipulate any market." Santos rose to prominence after winning a seat representing parts of Queens and Long Island in New York. But his false life story about being a wealthy Wall Street figure with a college degree and other achievements soon came under scrutiny. He was later expelled from Congress and charged with federal wire fraud and identity theft as investigators examined how he funded his campaign. Santos pleaded guilty and served less than three months of a sentence of more than seven years before Trump granted him clemency last year. He is also set to appear on Fox's reality contest "Special Forces: World's Toughest Test" this fall.The settlement closes the federal regulator's case over Santos's Kalshi trades, with the former Congressman paying USD 35,000 and accepting a three-year trading ban while continuing to deny wrongdoing.With PTI Inputs- EndsPublished By: India Today Web Desk Published On: Aug 1, 2026 04:52 IST