In brief
- Active-duty U.S. Army soldier Gannon Ken Van Dyke is now scheduled for a December trial in Manhattan.
- Van Dyke allegedly abused classified military intelligence regarding Venezuelan President Nicolás Maduro's capture.
- Van Dyke, who pleaded not guilty to five federal charges in April, is accused of insider trading on Polymarket.
A tentative trial date was set on Monday in Manhattan for the U.S. Army soldier accused of abusing classified military intelligence to place winning wagers on Polymarket.
Gannon Ken Van Dyke, the 38-year-old who pleaded not guilty in April to five federal crimes including commodities fraud, is set to face trial on Dec. 7, per courtroom reporting from Inner City Press. Van Dyke’s activity allegedly centered on January’s removal of Venezuelan President Nicolás Maduro.
As the U.S. government’s first insider trading case involving a prediction market, the legal action in the Southern District of New York underscores coordinated efforts to rein in misconduct as the platforms face mounting scrutiny on Capitol Hill.
Van Dyke, who was released on a $250,000 personal recognizance bond following his arraignment, arrived in court before U.S. District Judge Margaret Garnett wearing a “dark suit jacket, black shirt, and no tie,” the independent news organization reported.
At the hearing, Van Dyke’s defense lawyers also indicated that they plan to file a motion to dismiss the government’s case by the end of next month, per ABC News.
Details regarding Van Dyke’s alleged conduct are likely to surface in response to an investigation launched by House lawmakers last month. Oversight Committee Chair James Comer (R-KY) specifically requested all documents and internal communications from Polymarket related to wagers on the U.S. operation to capture Venezuela’s president.
Prosecutors accused Van Dyke, an active-duty service member, of placing 13 bets on Venezuela-related outcomes over a seven-day period that began in late December. Allegedly, the soldier generated $410,000 in profit on an initial investment of $33,000.
What’s more, Van Dyke is accused of trying to cover his tracks by requesting the deletion of his Polymarket account. He faces three counts of violating the Commodity Exchange Act, along with wire fraud and making an unlawful monetary transaction.
The CFTC filed its own complaint separately, with Chair Mike Selig saying, “Anyone who engages in fraud, manipulation, or insider trading in any of our markets will face the full force of the law,” regardless of the shifting regulatory backdrop surrounding prediction markets.