Former Congressman George Santos Settles Federal Investigation

George Santos, a former congressman from New York, agreed to pay $35,000 to resolve a federal investigation into suspicious trades on the prediction marketplace Kalshi. He reportedly bet against his own plan to attend President Donald Trump’s State of the Union address.

Santos settled with the Commodity Futures Trading Commission (CFTC) to avoid lengthy litigation. He did not admit any wrongdoing. “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,” stated Santos’ lawyer Joseph Murray, in a statement shared by Santos on X.

The settlement includes more than $17,000 Santos earned from the trades and a $17,500 fine. Additionally, the agency imposed a three-year trading ban on him. Kalshi, which reported Santos, is pursuing its own enforcement action and plans to reimburse traders if possible penalties are recovered.

Before Trump’s February speech, Santos often mentioned his plans to attend. However, during the speech, he posted that he was stuck at the airport and couldn’t reach Capitol Hill. Onlookers noticed Kalshi had odds of 75% on Santos attending the address.

Social media users expressed skepticism, but Santos dismissed the issues at the time. “I guess people lost money,” he remarked on his podcast. “Some people made unexpected money. That’s to show you how fragile these markets are.” This investigation led Polymarket, an online prediction platform, to sever ties with Santos in June.

Santos’ lawyer defended him, stating he had a “genuine intention” to attend and had made travel arrangements before a storm thwarted the plan. “Mr. Santos concealed neither his intention to attend, nor his change of plans to not attend the SOTU, from anyone,” Murray said.

George Santos initially rose to political prominence after securing a congressional seat representing parts of Queens and Long Island. However, his fabricated life story of being a wealthy Wall Street figure with a college degree fell apart.

He was expelled from Congress and faced federal wire fraud and identity theft charges due to inquiries into his campaign funding. After pleading guilty, he served under three months of a more than seven-year sentence before receiving clemency from President Trump.