US Soldier in Polymarket Insider-Betting Case Opposes CFTC Court Filing

A U.S. soldier charged with making more than $400,000 on Polymarket using nonpublic information is objecting to the Commodity Futures Trading Commission's effort to weigh in on his criminal case.

Court filings in the U.S. District Court for the Southern District of New York, cited by Cointelegraph on August 24, show lawyers for Gannon Ken Van Dyke opposed the CFTC's bid to file an amicus curiae brief. The agency said it wants to address several arguments raised by Van Dyke's defense, including whether event contracts on prediction markets such as Polymarket fall under its jurisdiction as swaps.

Van Dyke's lawyers argued the CFTC is not a neutral friend of the court, but a party with its own interests in separate civil litigation. They said the agency is trying to advance its regulatory arguments indirectly by submitting a brief in the criminal case.

U.S. authorities charged Van Dyke with fraud in April. Prosecutors say he traded Polymarket event contracts using nonpublic information obtained while participating in an operation related to the removal of Venezuelan President Nicolas Maduro in January, generating more than $400,000 in profit. Van Dyke has pleaded not guilty to all charges.

The CFTC has also brought a civil suit against Van Dyke, but a federal court ordered that case paused until the criminal case is resolved. The criminal trial could begin as early as late 2026 or early 2027.

The case has become part of a broader debate over the legal framework for trading on nonpublic information in prediction markets. It is drawing attention as a key case amid continuing controversy over the regulatory reach of event contracts on platforms such as Polymarket and Kalshi, and the potential for market manipulation.