George Santos, a former congressman, agreed to pay $35,000 to resolve a federal investigation. The inquiry looked into his suspicious trades on the prediction marketplace, Kalshi, where he bet against his own attendance at President Donald Trump’s State of the Union. While settling, Santos did not admit to any wrongdoing.
Joseph Murray, Santos’ lawyer, emphasized that the settlement was a practical choice to avoid expensive litigation. He clarified that it did not signify an admission of guilt.
The Commodity Futures Trading Commission announced that Santos would return more than $17,000 earned from unlawful trades. Additionally, a $17,500 fine was imposed, along with a three-year trading ban.
Kalshi, who reported Santos to regulators, plans its own enforcement action. They aim to reimburse traders if penalties are recovered.
Before Trump’s speech, Santos discussed attending the event. However, he later informed on social media that he got stuck at the airport. Online users noted that predictions on Kalshi had estimated a 75% chance of his attendance.
Although confronted with complaints, Santos remarked on a podcast about the market’s fragility. The situation led Polymarket, another prediction platform, to sever ties with him in June.
Santos’ lawyer stated that his client genuinely intended to attend. Plans fell apart due to a winter storm. Murray stated that Santos had no aim to manipulate markets.
Despite these challenges, Santos remains in the public eye. He is expected to appear on Fox’s “Special Forces: World’s Toughest Test.” However, his rise in politics was short-lived due to fabrications about his past and subsequent criminal charges.
Santos was expelled from Congress and faced charges of federal wire fraud and identity theft in connection with campaign financing. His guilty plea led to a sentence reduction, and former President Trump granted clemency, allowing him early release.