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A federal judge has allowed the Commodity Futures Trading Commission to weigh in on the criminal case against U.S. Army soldier Gannon Ken Van Dyke, who is accused of using classified military information to make more than $400,000 trading Venezuela-linked contracts on Polymarket.
The dispute centers on whether the event contracts qualify as swaps under federal commodities’ law. Van Dyke has pleaded not guilty and is seeking dismissal of the indictment.
Judge Allows CFTC Brief Despite Van Dyke Objection
Judge Margaret Garnett granted the CFTC permission on August 24 to file an amicus brief supporting the government’s opposition to Van Dyke’s dismissal motion.
His lawyers opposed the request, arguing that the regulator was an interested party because it has its own civil enforcement case against him. Garnett said the court would give the CFTC’s arguments appropriate weight.
Van Dyke and prosecutors may file supplemental responses of up to 10 pages by September 9 if the CFTC raises arguments not already addressed in their briefs.
Defense Says Geopolitical Event Contracts Are Not Swaps
Van Dyke argues that Polymarket contracts tied to Maduro and U.S. military action in Venezuela were geopolitical wagers rather than swaps covered by the Commodity Exchange Act. If accepted, that argument would directly undermine the indictment’s three CEA counts involving confidential government information, theft of nonpublic information and commodities fraud.
Prosecutors allege Van Dyke placed 13 bets totaling about $33,034 while helping plan Operation Absolute Resolve. After U.S. forces captured Maduro on January 3, the trades allegedly generated about $409,881 in profit.
CFTC Civil Case Remains Stayed During Criminal Proceedings
The CFTC separately sued Van Dyke on April 23, alleging insider trading and seeking restitution, disgorgement, civil penalties and trading and registration bans. Its complaint says he bought more than 436,000 “Yes” shares in a Maduro contract using classified nonpublic information.
Judge Andrew Carter stayed that civil case on August 7 pending the criminal proceedings, citing potential Fifth Amendment implications.
The next deadline in the criminal dismissal fight is September 9. Van Dyke’s trial is tentatively scheduled to begin December 7.
