Van Dyke faces multiple charges tied to the alleged scheme.
The hit
The US Justice Department told a federal court that binary event contracts are swaps under federal law, a move aimed at keeping the charges alive against a soldier who made $409,000 trading on Polymarket. Master Sgt. Gannon Ken Van Dyke was indicted in April over an alleged scheme using classified military secrets to bet on when Venezuelan President Nicolás Maduro would be removed from power.
Why it matters
Van Dyke’s lawyers want the case dismissed, arguing the contracts he traded were never meant to be CFTC-regulated swaps, which could gut the charges. The DOJ says the defense misrepresents earlier Sixth & Ninth Circuit rulings, which the government argues covered only sports event contracts.
The record
| Alleged profit | $409,000 (DOJ indictment) |
|---|---|
| Indicted | April, Southern District of New York |
| DOJ letter to court | Sept. 30, signed by deputy US attorney Sean Buckley & 3 assistant attorneys |
| Max sentence, wire fraud count | 20 years |
| Max sentence, each Commodity Exchange Act count | 10 years (3 counts) |
| Max sentence, unlawful monetary transaction count | 10 years |
What happens next
Judge Margaret Garnett hears oral arguments from both sides on Oct. 7 over whether the indictment should be dismissed.
Sources: Justice Department Says Binary Event Contracts Are Swaps
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