Former Congressman George Santos has agreed to pay $35,000 to settle a federal investigation into his trading activities on the prediction marketplace Kalshi, according to a settlement reached Friday with the Commodity Futures Trading Commission (CFTC).
Santos, who represented parts of New York City's Queens borough and Long Island, stated he chose to settle to "put this matter behind him," with his lawyer emphasizing that the decision does not constitute an admission of 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," said Joseph Murray, Santos' lawyer, in a statement.
The CFTC's settlement includes the more than $17,000 Santos profited from the trades and a $17,500 fine. The agency also issued a three-year trading ban against him.
Kalshi, which had reported Santos to regulators, indicated it would pursue its own enforcement actions and work to reimburse traders if monetary penalties are recovered.
The investigation stemmed from trades Santos made on Kalshi related to his stated plans to attend President Donald Trump's State of the Union address in February. Santos had publicly indicated his intention to be present, but shortly after the speech began, he posted on X (formerly Twitter) that he had been delayed at the airport and could not attend. This post drew scrutiny from social media users who noted that Kalshi had placed the odds of his attendance at approximately 75%.
At the time, Santos dismissed the criticism on his podcast in March, stating, "I guess people lost money. Some people made unexpected money. That’s to show you how fragile these markets are."
The federal probe prompted Polymarket, another online prediction platform, to sever ties with Santos in June.
Santos' lawyer asserted that his client had a "genuine intention" to attend the State of the Union, having booked travel arrangements. "Mr. Santos concealed neither his intention to attend, nor his change of plans to not attend the SOTU, from anyone. There was absolutely no intent to deceive any person, nor intent to manipulate any market," Murray stated.
Santos, who was expelled from Congress after his fabricated personal and professional history came to light, is also scheduled to appear on Fox's reality competition "Special Forces: World’s Toughest Test" this fall. He previously faced federal wire fraud and identity theft charges, related to how he funded his campaign, for which he pleaded guilty. He served less than three months of a sentence before receiving clemency from former President Donald Trump last year.