Prediction market platform Kalshi announced disciplinary action against US House of Representatives candidate Laurie Buckhout and ousted Republican lawmaker George Santos for using insider information to trade on event contracts. The bans represent some of the first lifetime restrictions the company has imposed since its 2021 launch.
Kalshi's compliance department permanently suspended Santos from the platform and imposed a $71,356 penalty. Buckhout received a three-year suspension and a $2,590 penalty.
Both restrictions stemmed from investigations into trading activity on contracts the individuals could manipulate through their own actions. Buckhout, running in North Carolina's 1st congressional district, traded on a market contract listing her as a candidate option. Santos engaged in trading related to his attendance at the State of the Union address in February 2026.
Under Kalshi's rules, traders with direct or indirect influence over contract outcomes are prohibited from entering any trades on those markets. The platform stated that Buckhout cooperated with the inquiry and agreed to the settlement terms, though no such statement was made regarding Santos.
Santos responded to the settlement on social media, calling Kalshi an "unserious company," while Buckhout reportedly described her betting on her own congressional race as a "dumb mistake." Buckhout remains the Republican candidate for her district in the 2026 midterm elections, and Santos was expelled from Congress in December 2023 amid fraud allegations.
The action comes as prediction market platforms face heightened scrutiny from federal and state regulators over manipulation concerns. The US Commodity Futures Trading Commission previously cited exclusive jurisdiction over prediction markets, while state gaming authorities have filed lawsuits against companies including Kalshi and Polymarket.
