CFTC and SDNY Bring Charges Against Individual Over Insider Trading Involving Event Contracts

TLDR

• The CFTC initiated a legal complaint against Gannon Ken Van Dyke in New York.
• The Southern District of New York (SDNY) revealed a corresponding indictment on April 23, 2026.
• The core of the case involves Polymarket event contracts related to Maduro.
• According to the CFTC, Van Dyke allegedly profited over $404,000 from these trades.
• The CFTC states this represents its inaugural insider trading case concerning event contracts.

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(SeaPRwire) –   An active-duty U.S. Army service member has been charged by the CFTC and SDNY for alleged insider trading involving Polymarket event contracts. Prosecutors assert that Gannon Ken Van Dyke utilized classified nonpublic information pertaining to a U.S. operation concerning Nicolás Maduro. The CFTC reports that these trades yielded over $404,000, making it their initial insider trading case connected to event contracts.

CFTC Lodges Complaint Over Polymarket Trading

The Commodity Futures Trading Commission (CFTC) lodged a complaint in the Southern District of New York, identifying Gannon Ken Van Dyke, a resident of North Carolina. 

The CFTC stated that Van Dyke was an active-duty U.S. Army service member and alleged he exploited classified nonpublic information connected to a U.S. operation. 

The agency indicated the information pertained to “Operation Absolute Resolve,” an initiative focused on apprehending Nicolás Maduro and Cilia Flores. 

SDNY Initiates Parallel Criminal Case

On April 23, 2026, the U.S. Attorney’s Office for the Southern District of New York disclosed an indictment, which alleged comparable behavior. 

The CFTC reported that Van Dyke acquired more than 436,000 “Yes” shares in a market predicting whether Maduro would be removed by January 31, 2026.

The CFTC stated these trades took place between December 30, 2025, and January 2, 2026, asserting Van Dyke operated under the Polymarket username “Burdensome-Mix.” 

CFTC Highlights Broader Event Contract Enforcement

The CFTC reported Van Dyke amassed over $404,000 in profits and is seeking restitution, disgorgement, financial penalties, trading prohibitions, and a permanent injunction. 

CFTC Chairman Michael S. Selig declared that “anyone involved in fraud, manipulation, or insider trading” would be subject to enforcement actions. 

Enforcement Director David I. Miller noted that this case represents the CFTC’s inaugural insider trading charge related to event contracts. He also referenced the “Eddie Murphy Rule” concerning the improper use of government information. 

Following enforcement actions against KalshiEX, which involved alleged misuse of nonpublic information and fraud in prediction markets, the CFTC also released an advisory.