CFTC, US soldier accused of illegal Polymarket bet spar over interpretation of prediction markets
A judge stayed the CFTC’s civil case against a soldier who allegedly used nonpublic information for a Polymarket bet, but the regulator is trying to weigh in on the criminal case.
In a legal battle over the interpretation of prediction markets, a federal judge has stayed the CFTC's civil case against Gannon Ken Van Dyke, a soldier who allegedly used nonpublic information to make over $400,000 through trades on the Polymarket platform. However, the regulator is now attempting to weigh in on Van Dyke's criminal case.
Van Dyke's defense attorneys have criticized the CFTC for filing an amicus brief in the criminal proceedings, claiming it is attempting to advance its own interests rather than facing the charges head-on. The soldier is accused of fraud for trading event contracts on Polymarket related to the removal of Venezuelan President Nicolás Maduro, for which he had access to nonpublic information.
The case has garnered attention as an example of potential manipulation on platforms like Polymarket and Kalshi. A federal judge has already ordered the CFTC's civil case to be stayed pending the outcome of the criminal proceedings, with a potential criminal trial beginning in late 2026 or early 2027.
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