Former Republican Ordered To Pay Thousands
Former New York Congressman George Santos has been ordered to pay more than $35,000 after federal regulators concluded he improperly profited from trades tied to his attendance at the president’s State of the Union address.
The Commodity Futures Trading Commission (CFTC) announced that Santos agreed to settle allegations involving prediction market trades on Kalshi. The agency said he bought and sold contracts that allowed traders to wager on whether he would attend the annual speech before Congress.
According to regulators, Santos made a series of public statements about his plans while holding positions in the market. The CFTC alleges those statements influenced trading activity and ultimately benefited his financial position.
The day before the speech, Santos posted on X that he planned to attend the State of the Union and would be seated in the House gallery. The following day, however, he told followers he watched the address from the airport instead.
Federal officials said those public comments caused the market to move in a direction favorable to Santos’ trades, allowing him to earn more than $17,500.
As part of the settlement, Santos will repay $17,569.98 in profits and pay an additional $17,500 civil penalty, bringing the total amount to more than $35,000.
The agreement also prohibits Santos from participating in prediction markets for three years and requires him to refrain from future violations of federal commodities laws.
Santos’ attorney, Joseph Murray, said the settlement allows his client to move forward without admitting wrongdoing.
Attorney Joseph Murray said Santos chose to settle the CFTC investigation in order to move forward. Murray also emphasized that, as is common in many regulatory settlements, Santos did not admit to the agency’s allegations or accept its findings or legal conclusions.
The latest enforcement action adds to Santos’ already lengthy legal history.
The former Republican lawmaker was expelled from the House of Representatives following an ethics investigation into allegations that he fabricated key parts of his personal and professional background.
He was later convicted on wire fraud and aggravated identity theft charges and sentenced to more than seven years in federal prison.
President Donald Trump later commuted Santos’ sentence, but the CFTC’s latest action shows that his legal and financial challenges continue.
The case also shines a spotlight on the growing popularity of prediction markets, where traders buy and sell contracts based on the outcomes of future events. Federal regulators have increasingly scrutinized these platforms to ensure markets remain fair and free from manipulation, particularly when public figures have the ability to influence the outcome through their own statements.
