Master Sgt. Gannon Ken Van Dyke, a US special forces soldier, has requested a federal court to dismiss charges regarding his trades on the prediction platform Polymarket. The defense argues that the Department of Justice is applying an unprecedented interpretation of federal law to criminalize his betting activities.
Legal Challenges to the Indictment
Van Dyke was indicted in April on three counts of violating the Commodity Exchange Act, alongside charges of wire fraud and unlawful monetary transactions. Prosecutors allege that the soldier utilized confidential intelligence concerning the US operation to capture Venezuelan leader Nicolás Maduro to place successful bets.
The government claims Van Dyke generated approximately $409,000 in profit from an initial investment of roughly $33,000.
In a motion filed on July 31, the defense contends that Polymarket event contracts do not qualify as "swaps" under the Commodity Exchange Act. Lawyers argue that Congress intended the legislation to regulate financial derivatives for commercial risk management rather than wagers on future events. They assert that accepting the government's interpretation would significantly expand federal oversight over betting markets, including elections and political outcomes.
The legal team also seeks dismissal of the wire fraud charge, stating that confidential military planning information does not constitute "property" under federal law. Consequently, the associated money laundering charge should be dropped as it relies on the fraud allegation. If convicted on all five counts, Van Dyke faces a maximum sentence of 60 years in federal prison.
The prosecution describes this as the first insider trading case involving a prediction market. The contracts in question included predictions on whether Maduro would be removed from power before the end of January 2026 and whether US forces would enter Venezuela. Following the operation, Van Dyke was photographed aboard the USS Iwo Jima, the vessel that transported Maduro to the United States.