Former Congressman George Santos has agreed to pay over $35,000 to settle allegations that he manipulated a trade on the prediction market platform Kalshi. The wager in question concerned whether Santos would attend the 2026 State of the Union address.

The Securities and Exchange Commission (SEC) charged Santos with violating anti-fraud provisions of federal securities laws. According to the SEC's complaint, Santos placed a bet on Kalshi, a platform where users can trade contracts based on the outcome of future events. Santos allegedly used his position as a congressman to influence the outcome of the event he was betting on, thereby engaging in manipulative conduct.

The settlement requires Santos to pay a civil penalty of $17,400, disgorgement of $1,500 in ill-gotten gains, and prejudgment interest of $16,200. This resolution aims to resolve the SEC's claims without further litigation. Santos has also agreed to a five-year ban from participating in securities offerings.

Santos, who represented New York's 3rd congressional district, has faced numerous legal and ethical challenges during his tenure. This Kalshi incident adds another layer to the scrutiny he has endured.