Master Sgt. Gannon Ken Van Dyke argues prediction-market event contracts are not clearly covered by commodities law as prosecutors pursue fraud charges tied to alleged use of classified military intelligence.
Master Sgt. Gannon Ken Van Dyke has asked a judge to dismiss criminal charges accusing him of using classified or nonpublic military intelligence to place about 13 Polymarket bets and make more than $400,000 in profit. In an August 1 filing described as a 51-page memo, Van Dyke argues that betting on prediction-market event contracts is not itself illegal and that the Commodity Exchange Act is ambiguous on whether such contracts should be treated as swaps or commodities for fraud purposes. Prosecutors allege Van Dyke, 38, while stationed at Fort Bragg and involved in planning and execution of “Operation Absolute Resolve,” signed nondisclosure agreements starting around December 8, 2025 and wagered roughly $33,034 between late December 2025 and late January 2026 on U.S. military actions in Venezuela, including outcomes tied to Nicolás Maduro and war powers. Charges unsealed on April 23, 2026 include unlawful use of confidential government information, commodities fraud and wire fraud, among other offenses; Van Dyke pleaded not guilty on April 28. A tentative trial date is set for December 7, 2026, though one report said a June scheduling filing suggested late 2026 or early 2027. The case could test whether existing fraud statutes and commodities law can be applied to blockchain-based prediction contracts that settle on-chain.