A federal judge has halted a civil case by the U.S. Commodity Futures Trading Commission (CFTC) pending the completion of a criminal proceeding against a U.S. soldier. The investigation alleges that he used non-public information to profit on a Polymarket contract related to the removal of Venezuelan President Nicolás Maduro.
On Monday, U.S. District Judge for the Southern District of New York Andrew Carter granted a July motion by prosecutors to stay the CFTC case "pending completion of the criminal prosecution."
The cases against U.S. Army Special Forces Master Sergeant Gannon Ken Van Dike relate to allegations of making over $400,000 on Polymarket contracts concerning Maduro's removal. According to the U.S. Department of Justice, Van Dike participated in an operation to oust Maduro in January. Subsequently, he was charged with using non-public information to profit on prediction markets.
The criminal and civil cases, initiated in April, could have significant implications for lawmakers and government officials who use prediction markets. The soldier has already filed a motion to dismiss the criminal indictment on several legal grounds, including the argument that the CFTC's qualification of event contracts as "swaps" on prediction markets was "ambiguous."
Van Dike has pleaded not guilty to all charges. The criminal trial could begin in late 2026 or early 2027.
Related: Trump's Teleprompter Operator Made $100K Betting on Kalshi Markets Related to Speeches: ABC
