Prediction market Kalshi suspended Republican candidate Laurie Buckhout for three years after she bought under $1,000 of contracts on her own race and agreed to a $2,589.96 fine, and the exchange earlier slapped a lifetime ban and over $70,000 fine on George Santos. Kalshi and the CFTC have stepped up enforcement and introduced three market integrity measures in June to curb insider trading, increasing security and regulatory scrutiny of crypto prediction markets and potentially boosting adoption and trust amid congressional interest in further limits.

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In Brief

Kalshi suspended Laurie Buckhout for three years over bets related to her own candidacy.
Buckhout wagered under $1,000 and agreed to pay a $2,589.96 penalty.
Kalshi also imposed its first-ever lifetime ban on George Santos.

Prediction market Kalshi suspended Republican House candidate Laurie Buckhout for 3 years after finding that she had placed bets on her own race.

Buckhout is challenging Democratic Representative Don Davis in North Carolina’s 1st Congressional District.

The Fine Costs More Than the Wager

Buckhout bought less than $1,000 in contracts related to her own candidacy, according to the disciplinary notice Kalshi published. She agreed to pay a penalty of $2,589.96, more than the bet itself.

Kalshi rule 5.17(z) bars any trader with direct or indirect influence over an event from trading that contract. A candidate on the ballot meets that test.

The prediction market said Buckhout cooperated with its inquiry. She accepted the findings and also agreed to the ban and the penalty.

“I bet on myself. Literally. It was a dumb mistake, and as soon as I learned there was an issue, I worked to make it right. Safe to say my career as a Kalshi trader was short-lived,” Laurie Buckhout said.

Santos Got a Lifetime Ban, Buckhout Got 3 Years.

Kalshi has moved repeatedly in recent days. It imposed a lifetime ban and a fine of over $70,000 on former congressman George Santos on Monday after he refused to cooperate with investigators.

Days earlier, the Commodity Futures Trading Commission (CFTC) and Kalshi acted against a White House teleprompter operator over bets on Trump’s speech text.

Kalshi has been working to curb insider trading on its platform. The exchange introduced three market integrity measures in June.

Congress may push further. Representative Bryan Steil filed a bill in June that would ban lawmakers from betting on political outcomes, with fines and forfeited gains attached.

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