Former Representative George Santos has been fined $35,000 by federal regulators for engaging in insider trading related to bets he placed on a prediction market concerning his attendance at President Trump’s 2024 State of the Union address. The Commodity Futures Trading Commission (CFTC) announced Friday that Santos manipulated trades on Kalshi, a popular prediction platform, by posting misleading information on social media to suggest he would attend the event, while simultaneously betting against his own presence.

According to the CFTC, Santos earned approximately $18,000 over a two-week period in February through these deceptive trades. The agency said he has agreed to pay a civil penalty in addition to relinquishing the profits gained from the activity.

A spokesperson for Kalshi confirmed that the company conducted an internal investigation and reported the findings to the CFTC, providing evidence that led to the enforcement action. Santos did not immediately respond to requests for comment.

The case against Santos highlights ongoing regulatory concerns about insider trading and market manipulation on emerging prediction market platforms, which have been increasingly scrutinized for their ability to police unethical behavior. On the same day as the fine announcement, the New York Attorney General filed a lawsuit against Kalshi, alleging that the company operated in violation of state laws designed to restrict unregulated gambling.

The particular betting market involved in the Santos case centered on whether various political figures would attend the State of the Union address, with Santos’s attendance becoming a widely discussed topic among users.

Santos, 38, previously faced federal fraud charges in 2023 following revelations about falsehoods in his personal and financial disclosures. He was expelled from Congress as a New York Republican and later sentenced to over seven years in prison. However, his sentence was commuted by President Trump after serving less than three months.

This recent regulatory action adds to Santos’s series of legal and ethical controversies, underscoring challenges regulators face in monitoring novel financial markets and ensuring compliance with existing laws.