Kalshi Dishes Out Its First-Ever Lifetime Ban to George Santos (engadget.com) 62
Kalshi has issued its first-ever lifetime ban to former U.S. Rep. George Santos after concluding he failed to fully cooperate with an insider-trading investigation. He is also being fined $71,356, according to a filing (PDF) on its website. Engadget reports:
It was reported in June that Santos was under investigation from the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) over insider trading. Prediction markets like Kalshi allow users to buy contracts or shares in the outcome of events. Participants don't necessarily have to wait for an event to resolve before selling these contracts and cashing in.
Santos allegedly bought contracts on Kalshi indicating that he would not attend this year's State of the Union speech after weather disrupted his travel plans. According to the CFTC, Santos then sold those contracts for a profit after claiming on social media that he would be in attendance. The former congressman is said to have made more than $17,500 through this scheme, which Kalshi reportedly detected and flagged to authorities. In July, Santos agreed to pay over $35,000 to settle the CFTC's claims against him. The agency also issued him a three-year trading ban.
Kalshi, however, doesn't plan to allow Santos back on its platform in 2029 (or anytime after that). The company confirmed to The Wall Street Journal this was the first time it had given anyone a lifetime ban and that it did so because Santos didn't fully cooperate with its investigation. He can appeal the decision to the CTFC.
Santos allegedly bought contracts on Kalshi indicating that he would not attend this year's State of the Union speech after weather disrupted his travel plans. According to the CFTC, Santos then sold those contracts for a profit after claiming on social media that he would be in attendance. The former congressman is said to have made more than $17,500 through this scheme, which Kalshi reportedly detected and flagged to authorities. In July, Santos agreed to pay over $35,000 to settle the CFTC's claims against him. The agency also issued him a three-year trading ban.
Kalshi, however, doesn't plan to allow Santos back on its platform in 2029 (or anytime after that). The company confirmed to The Wall Street Journal this was the first time it had given anyone a lifetime ban and that it did so because Santos didn't fully cooperate with its investigation. He can appeal the decision to the CTFC.
fine by Kalshi? (Score:2)
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Contracts. The user agreement must have a clause allowing these fines.
Re:fine by Kalshi? (Score:4, Interesting)
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That's the usual way, but calling it a "fine" is stupid and confusing. "Penalty" is the correct word.
Re: fine by Kalshi? (Score:3)
Pick a fucking lane, Legal Beagle. (Score:2)
Kalshi has issued its first-ever lifetime ban..He is also being fined $71,356..
Hey uh, just curious. Is Kalshi also offering scholarships and grants yet?
Asking for a bookie in Federal prison named Double Standard who's still wondering how Kalshi got the fuckin' balls to not offer a VIP training program..
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The sequence of events is fascinating (Score:5, Funny)
Santos: engages in insider tradiing
Kalshi: no, not like that
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It's way too obvious. They trade on the inside info leaking in a way that isn't easily traceable. Santos is a complete buffoon and this is yet another testament to how stupid he is....political leanings aside.
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Kalshi is not "specifically designed" for insider trading(*). In fact, it's specifically designed not to allow such trading. Kalshi's own rules, and the laws enforced by the Commodities Futures Trading Commission forbid it. George Santos being fined and banned shows that enforcement in action.
(*) You actually mean trading on insider information but I'll let that slide.
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NO!
Kalshi IS specifically designed for insider trading, BUT it loses all value if every schmuck out there can do it
By swatting down a supposed Trumper, they get to look like they are hard on them, while trump and family can continue to fleece the morons
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NO!
Kalshi IS specifically designed for insider trading, BUT it loses all value if every schmuck out there can do it
If everyone can do it, then it's not insider information.
Re:The sequence of events is fascinating (Score:4, Insightful)
That's not how insider trading works.
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That's literally not how any of those English words work. There is no way to interpret what was said in the way you said it with any level of English comprehension. Do you actually even understand what is being discussed?
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Anonymous Coward: Kalshi IS specifically designed for insider trading.
Kalshi and the CFTC: Kalshi and the courts will punish anyone who commits insider trading, with bans (potentially for life), fines, and disgorgement of any winnings.
TFS of this story: George Santos has been banned for life and must pay a $35,000 settlement.
Guess who I'm going to believe. (Hint: not the AC.)
Re:The sequence of events is fascinating (Score:4, Informative)
In fact, it's specifically designed not to allow such trading.
That's like building a gun and selling it with a piece of paper that says "please never shoot it" and people like you saying the gun is specifically designed not to be fired. Sorry but there's zero technical barriers to prevent insider trading, none at all. In fact the ability to wager your own bets is what separates this platform from traditional ones and which also enables insider trading. So its core function and enabling insider trading is intermingled.
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In fact, it's specifically designed not to allow such trading.
That's like building a gun and selling it with a piece of paper that says "please never shoot it" and people like you saying the gun is specifically designed not to be fired.
I said specifically designed not to allow such trading. I did not say specifically designed to prevent such trading.
Like in any other institution with rules, some people will break them. They can do that, but they will face consequences. You can't entirely prevent unlawful behavior, but you can discourage it with rules and punishments. The existence of those rules is the "specific design" I spoke of.
Sorry but there's zero technical barriers to prevent insider trading, none at all.
Again, I didn't say it prevented insider trading. I just said it wasn't allowed. And there are consequences f
Re:The sequence of events is fascinating (Score:5, Insightful)
I said specifically designed not to allow such trading. I did not say specifically designed to prevent such trading.
I frankly don't care which word you want to use, substitute your word of choice into my post and note that it still read identically. No there's nothing at all in the design that does not allow insider trading.
Saying pretty please in the terms of service is not a design component.
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There are zero "technical barriers" that prevent someone performing insider trades on the stock market. But they are not allowed because there are strict rules against such trades.
Does that mean the stock market is "specifically designed" for insider trading? No: it's technically possible to perform such trades but it's against the rules and you'll face consequences for doing it.
Just like insider trades on Kalshi.
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There are zero "technical barriers" that prevent someone performing insider trades on the stock market.
Precisely zero people here claimed the stock market was designed to not allow insider trading. So what point were you making?
I mean other than you highlighted different words than the ones under discussion.
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Precisely zero people here claimed the stock market was designed to not allow insider trading. So what point were you making?
Once again, my point was the stock market does not allow insider trading, but it cannot prevent it. Those who do it can be punished. And in no way can one conclude from this that the stock market was "specifically designed" for insider trading.
Similarly, Kalshi does not allow insider trading, but it cannot prevent it. Those who do it can be punished. And in no way can one conclude from this that Kalshi was "specifically designed" for insider trading.
For both markets, insider trading is not a deliberately-ad
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I said specifically designed not to allow such trading. I did not say specifically designed to prevent such trading.
I frankly don't care which word you want to use, substitute your word of choice into my post and note that it still read identically.
Maybe this will help.
Suppose you have a teenage daughter who has a date with someone you strongly disapprove of. You tell your daughter she is not allowed to date this person.
Your daughter sneaks out of the house and dates this person anyway. She was not allowed to date this person, but you did not prevent her from doing so. In order to prevent her from dating this person, you'd have to restrain her somehow from leaving the house.
She comes back from the date, and you ground her. She has faced consequences r
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Was the house designed to keep her in? You're focusing on the wrong words.
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Was the house designed to keep her in? You're focusing on the wrong words.
No, you are. I was hoping to impart an understanding of the difference between not allow and prevent but it seems to have sailed right past you.
The raging addiction, is fascinating. (Score:2)
Don't you just love it when the junkies all ignore how addicted they are to a legalized gambling market, and instead pretend THE problem with speculative markets, is technicalities around legalities policed about as well as IRS violations?
The only technicality outstanding in society at this point, is asking why bookies are still rotting in Federal prison instead of holding the title of Speculative Board Member.
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I'm not sure whether you were addressing my comments, but just in case...
Gambling addiction is a serious mental disorder that can be addressed with treatment. If you suffer from it and cannot self-manage, then stop gambling and get help.
That said, I was not trying to pretend that "THE problem" with online gambling was some legal technicality regarding insider trading. I was just pushing back on the idea that Kalshi and other speculative markets were specifically designed for insider trading. They explicitly
The dead pool, like Clint Eastwood, not Marvel (Score:4, Insightful)
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Congratulations, I think you have made the most insightful comment here. But a few points:
Kalshi is not unregulated. They are regulated by the Commodities Futures Trading Commission (CFTC).
It chills me to the bone to think of someone betting on a horrific outcome like the ones you described and then inducing it to happen. That's most certainly an insider trade! And if a scenario like that were to occur, I think the FBI as well as the CFTC would (or should) be involved in pursuing the miscreants.
Kalshi is no
Santos got in trouble (Score:3)
You can kill anyone you want as a Republican and you can steal and murder as many orphans and old ladies but you do not fuck with the money. Honestly he's lucky he didn't get 20 or 30 years.
What I don't understand is why Republican voters love this guy
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More like:
Kalshi: builds a platform specifically designed to encourage and profit from insider trading
Santos: engages in insider tradiing until he gets kicked out of the insiders' club
Kalshi: now that you are no longer an insider you are banned
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Kalshi: builds a platform specifically designed to encourage and profit from insider trading
Santos: engages in insider tradiing
Kalshi: no, not like that
His crime was getting caught. Never, ever let the authorities, let alone the general public in on the scam.
But I wouldn't worry, this isn't Kalshi telling Santos he's unwanted, this is Kalshi telling Santos to cover his tracks better. His secret, illegal account is still safe and active... Oh crap, I shouldn't have said he has a secret account... Oh crap, I certainly shouldn't have said it was illegal.
This is entirely performative to maintain a very thin veneer of legitimacy.
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They need a fall guy, someone to throw under the bus.
The rest of the Republicans in Congress were already pointing to him saying, "Look, there's the bad guy. We got rid of him. No lies and corruption here, anymore!"
Kalshi is whitewashing their operation in the same way, and with the same dude.
Damn, banned from the grifters (Score:3)
Re:like being thrown out of hell 4 being 2 evil (Score:2)
Could happen [bsky.app]
I wonder if he bet on this (Score:2)
See subject.
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He's banned, so even if he did, he won't see a payday.
Clearly George Santos did not ... (Score:2)
pay the orange one a sufficiently large bribe to ensure that he was not charged.
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corrosion of norms (Score:2)
Yes, he has. He has made a bald-faced mockery of the rule of law. That's priceless for supporters of an imperial presidency.
News flash! (Score:3)
Shady scummy company imposes ban on shady scummy politician!
I bet Kitara Rivache will make book on this (Score:2)
amirite?
Lying Thieving Bastard (Score:3)
Why is George Santos not in prison? Even the Republicans can't stand that lying thieving bastard.
Re:Lying Thieving Bastard (Score:4, Informative)
because his sentence was communted by the lying thieving bastard in the White House. Them LTBs gotta hang together, ya know?
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Alternate headline
Trump pardons drag queen https://www.reuters.com/world/... [reuters.com]
Kalshi Trying to Legitimize (Score:4, Insightful)
Donald is not (Score:2)
...pardoning his best.
Insider trading what? (Score:2)
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platform for entertainment only
So are casinos. And they can ban people for committing violations of their rules (card counting, etc) as they see fit.
Just more ammunition for the various lawsuits filed by states claiming that Kalshi violates their gambling laws.
Bury that Fuck-chuckle (Score:1)
Begging to be caught (Score:2)
First, betting on himself was a sure-fire way to get caught. Second, committing a crime for barely $18,000: That's pocket-change for a US politician where careful insider trading can pay $millions, without leaving a paper trail.
Reminds me of one of The Thin Man movies. (Score:2)
"I gotta go! I want to place a bet on the wrestling match."
"Why? Did you see the rehearsal?"
politicians get rich (Score:1)