TLDR
- Gannon Ken Van Dyke, a US Army Special Forces member, wants a federal judge to dismiss the CFTC’s case against him.
- The CFTC sued him in April, the same day the DOJ filed a related criminal indictment.
- Prosecutors say he used secret military information to bet on whether Maduro would be removed from office.
- He allegedly turned about $33,000 into more than $400,000 in profit.
- His lawyers argue the Polymarket contracts were not “swaps” under federal law.
A U.S. Army Special Forces member is fighting back against a federal case tied to his trading activity.
Gannon Ken Van Dyke wants a judge to dismiss a lawsuit filed against him by the Commodity Futures Trading Commission. He argues that his trades on Polymarket do not count as swaps under the law.
The CFTC filed its case in April. The Justice Department announced a criminal indictment against Van Dyke on the same day.
Prosecutors claim Van Dyke used secret military information for personal gain. They say he knew about a planned operation against Venezuelan President Nicolás Maduro.
Van Dyke allegedly used that knowledge to place bets on whether Maduro would be removed from power. Government lawyers say he turned about $33,000 into more than $400,000.
Van Dyke Argues Contracts Were Not Swaps
Van Dyke’s attorneys sent a letter to Judge Andrew Carter. They asked for a meeting to discuss dismissing the case quickly.
The lawyers say the Polymarket contracts were simple bets on a political event. They argue these bets do not meet the legal definition of a swap.
The filing points to specific sections of the Commodity Exchange Act. His team says Congress never meant for the law to cover this kind of contract.
They also say no case like this has ever been brought before. Because of that, they argue Van Dyke had no fair warning that his actions could break the law.
The defense cites the rule of lenity. This legal idea asks the court to favor Van Dyke if the law is unclear.
CFTC’s Authority Under Attack
Van Dyke’s lawyers also challenge a specific CFTC rule called Regulation 180.1. That rule bans deceptive conduct connected to swaps.
The defense says the CFTC went beyond its power when it created this rule. They argue the rule cannot be used against Van Dyke in this case.
The CFTC is seeking penalties. These include fines and the return of profits.
Van Dyke’s team says the case has already hurt his reputation and career. They also mention harm to his family.
His lawyers asked the court to set a fast schedule for legal arguments. As of now, the case remains open and a decision on dismissal has not been made.
