A U.S. soldier accused of earning over $400,000 from illegal trades on prediction market Polymarket has opposed the Commodity Futures Trading Commission’s (CFTC) attempt to file an amicus brief in his criminal case.
In a Monday filing with the U.S. District Court for the Southern District of New York, defense attorneys for Gannon Ken Van Dyke argued that the CFTC’s move was an improper regulatory overreach. The lawyers characterized the regulator’s request as an attempt to advance its interests indirectly rather than pursuing its own civil case against Van Dyke directly.
The CFTC had filed a notice seeking permission to submit its views on several of Van Dyke’s defense claims, including the argument that event contracts on Polymarket do not qualify as “swaps” under the agency’s jurisdiction. The regulator’s civil case against Van Dyke was previously stayed by a federal judge pending the outcome of his criminal proceedings.
Van Dyke faces fraud charges related to trades on Polymarket involving the potential removal of Venezuelan President Nicolás Maduro in January. Prosecutors allege he used nonpublic information to profit from event contracts tied to that political development. The case has drawn attention from lawmakers and critics of prediction markets, who cite it as a potential example of market manipulation on platforms such as Kalshi and Polymarket.
Van Dyke has pleaded not guilty to all charges, and his criminal trial is tentatively scheduled for late 2026 or early 2027. The CFTC’s civil case remains paused until the criminal proceedings conclude.
The dispute highlights ongoing regulatory scrutiny of prediction markets, which operate in a legal gray area despite growing participation from retail and institutional traders.
