Prosecutors Urge Judge to Keep 13-Bet Polymarket Insider Trading Case Against Soldier

3 articles · Updated · abcnews.com · Aug 20

Federal prosecutors asked a New York judge to deny Gannon Van Dyke’s bid to dismiss charges that he illegally profited from 13 Polymarket bets tied to Nicolas Maduro’s capture.
Their filing says the case is not legally novel because Van Dyke allegedly used confidential information he was dutybound to protect for personal gain — conduct prosecutors say courts have long treated as fraud and insider trading.
Van Dyke, a U.S. special forces soldier who took part in the raid that captured Maduro in Caracas, has pleaded not guilty and argues trades on a prediction market are not criminal.
The prosecution appears to be the first insider-trading case centered on a prediction market, with Van Dyke scheduled to stand trial in December.

Sources

Center100%

Will a soldier's $400,000 Polymarket bet rewrite the rules of insider trading for the entire crypto industry?

Could classified military operations become the ultimate loophole for illegal profit on prediction platforms?

If prediction markets ban insiders, will they lose the very accuracy that makes them valuable?