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Judge stays CFTC civil case over Polymarket bets tied to Maduro removal
The stay keeps the CFTC’s case paused while a criminal case proceeds over allegations the defendant used nonpublic information to profit on Polymarket contracts.
Cointelegraph reports that a New York judge has granted a U.S. prosecutors’ motion to stay the Commodity Futures Trading Commission’s civil case against US Army Special Forces Master Sergeant Gannon Ken Van Dyke.
The civil case, initiated by the CFTC, will be held in abeyance pending the outcome of a related criminal case. Both matters were filed in April, and prosecutors allege Van Dyke made more than $400,000 on Polymarket event contracts tied to the removal of Venezuelan President Nicolás Maduro, using nonpublic information.
According to the US Justice Department, Van Dyke was involved in an operation to oust Maduro in January, which prosecutors say supports the nonpublic information allegations. The article also notes that the outcome could carry implications for lawmakers and government officials who use prediction markets.
Van Dyke has pleaded not guilty and has asked for dismissal of the criminal indictment on legal theories including that the CFTC’s treatment of event contracts on prediction markets as “swaps” is ambiguous. Cointelegraph adds that a criminal trial is potentially scheduled for late 2026 or early 2027.