Leah Figer: Remember George Santos?
Brian Barrett: How could anyone forget?
Zoe Schiffer: True, although I didn’t expect to be talking about him again so soon.
Leah Figer: The former U.S. congressman was expelled from Congress in 2023 after facing fraud and theft charges. His dramatic political downfall generated intense national attention—and now George Santos is back in the headlines.
Brian Barrett: To clarify, Santos was not only charged. He also served time in prison.
Zoe Schiffer: I was about to make a very credible accusation.
Leah Figer: This week, it was revealed that Santos had been permanently banned from the prediction market platform Kalshi and fined $71,000. The penalties stem from allegations that he attempted to manipulate bets on whether President Donald Trump would attend the State of the Union address. We’re joined by WIRED senior correspondent Kate Knibbs to explain what happened.
Kate Knibbs: Hello, everyone. How are you doing?
Leah Figer: Kate, I’m glad you’re here. Can I share my favorite story of the week?
Kate Knibbs: I’d love to hear it—and I feel the same way about Santos. He has been accused of serious crimes, but he carries out his schemes with such boldness that it can be difficult not to watch.
Zoe Schiffer: It’s a remarkably entertaining scandal.
Kate Knibbs: Exactly. By the time this incident occurred, Santos had already been expelled from Congress and served time in prison. After his release, he began earning money by recording personalized videos on Cameo. He first posted that he planned to attend the State of the Union address, then later said he was stuck at the airport and would miss it. His post ended with “FML.”
Kate Knibbs: Kalshi had a prediction market on whether George Santos would attend the State of the Union. Someone made a significant profit by betting on the outcome. Because Kalshi had information about its customer, the platform quickly determined that the successful trader was Santos himself. His identity was not difficult for the company to verify.
Leah Figer: Wow.
Kate Knibbs: Kalshi’s rules prohibit users from trading or betting on events in which they are directly involved. Those restrictions are designed to prevent market manipulation and insider trading. Kalshi notified the Commodity Futures Trading Commission, or CFTC, about the incident, and the agency was already aware of the case.
Kate Knibbs: The $71,000 fine followed a back-and-forth between Santos and Kalshi. The platform also permanently banned him. On the same day, Kalshi announced enforcement actions against several other politicians who had bet on themselves. Those individuals received smaller fines and temporary suspensions rather than a lifetime ban.
Source: www.wired.com