CFTC and SDNY Charge Individual Over Insider Trading in Event Contracts

TLDR

• CFTC filed a complaint against Gannon Ken Van Dyke in New York.
• SDNY unsealed a related indictment on April 23, 2026.
• The case centers on Polymarket event contracts tied to Maduro.
• CFTC says Van Dyke made over $404,000 from alleged trades.
• CFTC says this is its first insider trading case involving event contracts.

The CFTC and SDNY have charged an active-duty U.S. Army service member over alleged insider trading in Polymarket event contracts. Prosecutors say Gannon Ken Van Dyke used classified nonpublic information linked to a U.S. operation involving Nicolás Maduro. The CFTC says the trades generated more than $404,000, marking its first insider trading case tied to event contracts.

CFTC Files Complaint Over Polymarket Trading

The Commodity Futures Trading Commission filed a complaint in the Southern District of New York. The complaint names Gannon Ken Van Dyke of North Carolina. 

The CFTC said Van Dyke was an active-duty U.S. Army service member. It alleged he used classified nonpublic information linked to a U.S. operation. 

The agency said the information related to “Operation Absolute Resolve.” The operation concerned efforts to capture Nicolás Maduro and Cilia Flores. 

SDNY Brings Parallel Criminal Case

The U.S. Attorney’s Office for the Southern District of New York unsealed an indictment on April 23, 2026. The indictment alleged similar conduct. 

According to the CFTC, Van Dyke bought over 436,000 “Yes” shares. The market asked whether Maduro would be out by January 31, 2026.

The CFTC said the trades occurred between December 30, 2025, and January 2, 2026. It alleged Van Dyke used the Polymarket handle “Burdensome-Mix.” 

CFTC Points to Wider Event Contract Enforcement

The CFTC said Van Dyke generated more than $404,000 in profits. It seeks restitution, disgorgement, penalties, trading bans, and a permanent injunction. 

CFTC Chairman Michael S. Selig said, “anyone who engages in fraud, manipulation, or insider trading” will face enforcement. 

Enforcement Director David I. Miller said the case marks the first CFTC insider trading charge involving event contracts. He also cited the “Eddie Murphy Rule” for misuse of government information. 

The CFTC also issued an advisory after KalshiEX enforcement cases. Those cases involved alleged misuse of nonpublic information and fraud in prediction markets.

The post CFTC and SDNY Charge Individual Over Insider Trading in Event Contracts appeared first on CoinCentral.