CFTC Charges U.S. Service Member With Insider Trading on Polymarket

• The Commodity Futures Trading Commission announced insider trading charges for a U.S. service member
• Gannon Ken Van Dyke, a service member in the U.S. Army, allegedly engaged in insider trading
• Van Dyke allegedly profited through Polymarket event contracts on Venezuelan President Nicolás Maduro being ousted from office

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The Commodity Futures Trading Commission announced it has filed an insider trading complaint against a U.S. service member who allegedly profited through Polymarket event contracts on Venezuelan President Nicolás Maduro being ousted from office.

The complaint alleges Gannon Ken Van Dyke of North Carolina, a service member in the U.S. army, allegedly used classified nonpublic information to generate more than $404,000 in profits through the prediction market’s event contracts.

Van Dyke allegedly purchased more than 436,000 “yes” shares of the “Maduro Out by January 31, 2026?” contract listed on Polymarket.com to generate the revenue.

Using Insider Information on Operation

The CFTC filed the insider trading complaint against Van Dyke in the U.S. District Court for the Southern Distrct of New York. The complaint alleges Van Dyke used nonpublic information to profit off “Operation Absolute Resolve,” which the involved the capture of Maduro and his wife, Cilia Flores.

“I have been crystal clear that anyone who engages in fraud, manipulation, or insider trading in any of our markets will face the full force of the law,” CFTC Chairman Michael S. Selig said in a release. “The defendant was entrusted with confidential information about U.S. operations and yet took action that endangered U.S. national security and put the lives of American service members in harm’s way.”

In the complain, the CFTC seeks restitution, disgorgement, civil monetary penalties, trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations, as charged.

The CFTC notes that from at least December 2025 through January 2026, Van Dyke was involved in “Operation Absolute Resolve.” He acquired nonpublic classified or sensitive information regarding the operation and between Dec. 30, 2025, and Jan. 2, 2026, Van Dyke used that information to purchase more than 436,000 “yes” shares of the Maduro event contract on Polymarket with his “Burdensome-Mix” handle.

“All members of the government, including service members, owe a duty of trust and confidentiality to the government and the American people,” said Director of Enforcement David I. Miller. “The defendant abused that trust by misappropriating extremely sensitive information regarding U.S. military operations, and by doing so, placed the lives and security of our service members at risk. This case marks the first time the CFTC has charged insider trading involving event contracts, and the first time the CFTC has used the so-called ‘Eddie Murphy Rule’ to bring charges based on the misuse of government information.”

President Trump Takes Shot at Prediction Markets

Following the arrest and complaint against Van Dyke, President Donald J. Trump (R) was asked his thoughts about insider trading with event contracts on events such as war.

President Trump’s comments were less than positive about the prediction markets.

“Well, you know, the whole world unfortunately has become somewhat of a casino. You look at what’s going on all over the world, in Europe, and every place they’re doing these betting things. I was never much in favor of it, I don’t like it conceptually. It is what it is. I’m not happy with any of that stuff. They have all these different sites, they have predictive market, it’s a crazy world,” he said.

NEWS: Pres. Trump says he "was never much in favor of" prediction markets. pic.twitter.com/GurAug74fM

— Gambling is Not Investing (@EndBackdoorBets) April 23, 2026

President Trump’s son, Donald Trump Jr., is employed as an advisor for Kalshi and is on the advisory board with Polymarket.

Kalshi Banned Three Insider Traders This Week

It has been a busy week for prediction markets and insider trading. Kalshi announced earlier this week it identified, and banned, three political candidates who were found to be trading on their own elections.

The cases, according to a Kalshi release, violated the company’s Commodity Futures Trading Commission (CFTC) approved exchange rules. All three candidates have been banned from the prediction market platform.

These actions come nearly a month after Kalshi announced it would take steps to block athletes and politicians from trading in certain political and sports markets to address recent concerns regarding insider trading.