Federal Judge Andrew Carter decided to suspend the Commodity Futures Trading Commission’s (CFTC) civil case against Gannon Ken Van Dyke. The defendant is not an ordinary civilian, but an active-duty US Army soldier with the rank of Special Forces Master Sergeant. He pocketed $409,881 in profits on Polymarket using classified military operation information from his own country.
Van Dyke was part of the planning and execution team for Operation Absolute Resolve, a United States military mission that led to the capture of Maduro in January 2026. The US Department of Justice (DOJ) stated that he used material non-public information from his job to place bets that benefited himself.
VPN and Accurate Bets
Van Dyke created a Polymarket account on December 26, 2025. He used a VPN with an overseas exit point to access the prediction platform. Between December 27 and January 2, he spent $33,934 on 13 transactions. His target was specific: he bought over 436,000 contract shares in markets predicting Maduro’s step-down.
His betting choices aligned with the actual military operation plans. He placed money on options regarding whether Maduro would step down before January 31, whether US troops would enter Venezuelan territory, and the likelihood of Trump using his war powers there. These contracts resolved as a win for Van Dyke after Maduro was captured on January 3.
Attempts to Cover His Tracks
Aware that his actions were likely to be detected, Van Dyke moved his winnings. He transferred the funds to overseas crypto vaults, exchanges, and new brokerage accounts. Once reports of this suspicious activity began circulating, he even requested that Polymarket delete his account.
This incident makes history for US law enforcement as the first precedent for an insider trading case in prediction markets. Polymarket itself has reported nearly 100 crypto wallets to authorities. This step was taken after researchers detected suspicious activity from $200 million in trading volume during the first half of 2026.
Hiding Behind Legal Status
The CFTC has filed a civil lawsuit since April over alleged contract trading. Meanwhile, the DOJ brought a list of multiple criminal charges including unauthorized use of classified government information, theft of non-public information, commodity fraud, wire fraud, and illegal monetary transactions.
In court, Van Dyke pleaded not guilty. He filed a motion to dismiss his criminal charges. One of the arguments used relied on a regulatory loophole, namely that the legal status of event contracts on Polymarket as swap instruments is still considered ambiguous. The criminal trial to determine the officer’s fate is expected to be held in late 2026 or early 2027.
As reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
