- George Santos was ordered by the CFTC to pay $35,000 after being accused of “manipulative activity” in prediction market trades regarding his attendance at the State of the Union address.
- The CFTC stated that Santos engaged in manipulative activity by trading on Kalshi event contracts in February.
- Santos made over $17,500 from these trades, which the CFTC has ordered him to forfeit.
- Santos has agreed to not further violate the Commodity Exchange Act and other CFTC regulations.
Former GOP Rep. George Santos has been ordered to pay $35,000 by the Commodity Futures Trading Commission (CFTC) for engaging in manipulative trading activities. The CFTC found that Santos traded on Kalshi event contracts regarding his attendance at the State of the Union address in February.12
The agency's investigation revealed that Santos made trades based on his public statements about attending the address, which influenced the contract prices favorably for him. “After these posts, the SOTU contract prices moved in a direction that was favorable to Santos’ positions which allowed him to make over $17,500,” the CFTC noted. Santos has also agreed to a three-year trading ban and to forfeit the $17,569.98 he earned from these trades.5
Santos stated, “I’m going to be there for the State of Union in the gallery, guys,” the day before the address, which the CFTC cited as part of its findings. Santos has settled the inquiry without admitting to any allegations, according to his attorney, who said, “Mr. Santos has agreed to resolve the CFTC’s inquiry and to put this matter behind him.” The CFTC emphasized the importance of compliance with the Commodity Exchange Act and related regulations in its announcement.6
“His February Kalshi bets included a contract asking whether he would attend the State of the Union, and his posts moved prices favorably so he made over $17,500, the CFTC said. Santos must also give up the $17,569.98 profit and is banned from trading for three years, settling without admitting the agency’s findings.”
cnbc.com
