<p>A federal judge in New York heard arguments Wednesday on whether to dismiss the case against an Army soldier accused of using classified information about the operation to capture Nicolas Maduro to win more than $400,000 on Polymarket.</p>
<p>U.S. District Judge Margaret Garnett questioned lawyers about the government’s charges and the legal basis for applying commodities and fraud laws to the trades allegedly made by Master Sgt. Gannon Ken Van Dyke. Garnett took the defense motions under advisement and did not issue a ruling.</p>
<figure class="wp-block-image size-large"><img alt="Gannon Ken Van Dyke leaves a federal court building in New York on Tuesday, April 28, 2026. (AP Photo/Ryan Murphy)" class="wp-image-4599595" height="683" src="https://www.washingtonexaminer.com/wp-content/uploads/2026/06/AP26118706677213.jpg?w=696" width="1024" /><figcaption class="wp-element-caption">Gannon Ken Van Dyke leaves a federal court building in New York on Tuesday, April 28, 2026. (AP Photo/Ryan Murphy)</figcaption></figure>
<p>Van Dyke has pleaded not guilty to charges including commodities fraud, wire fraud, theft of nonpublic government information, and unlawful use of confidential information for personal gain.</p>
<p>Prosecutors allege he used information obtained through his military role in Operation Absolute Resolve to place about $33,000 in bets on U.S. action in Venezuela and Maduro’s removal. After the operation, he allegedly collected roughly $409,000 and took steps to conceal his identity.</p>
<p>The defense argued that the prosecution relies on a novel interpretation of the law and that Van Dyke lacked fair notice that trading on the information could violate federal law.</p>
<p>“This is the first prosecution of its kind,” defense attorney Daniela Manzi said. Garnett replied, “Someone has to be the first.” Inner City Press reported the exchange in its live coverage of the nearly three-hour hearing.</p>
<p>A key dispute is whether Polymarket’s event contracts qualify as “swaps” under commodities law.</p>
<p>Prosecutors said the contracts fall within the law and argued that the Commodity Futures Trading Commission has authority to prohibit swaps tied to events such as assassination or military action. The defense said the government’s theory is unsupported and urged the judge to dismiss the charges.</p>
<p>Assistant U.S. Attorney Nicholas Chiuchiolo distinguished the bets from sports wagers, saying the case concerns U.S. military action in Venezuela, and therefore should constitute a swap. Prosecutors also argued they do not need to prove Van Dyke knew the contracts were swaps, describing that issue as jurisdictional.</p>
<p>Garnett, an appointee of former President Joe Biden, also pressed the defense on whether Polymarket users who took the opposite side of Van Dyke’s trades could be considered victims. The platform’s terms bar trading on inside information, she noted.</p>
<p>Defense attorney Zach Intrater answered that Van Dyke did not pass the information to anyone and owed no duty to the counterparties.</p>
<p>The hearing followed a July motion to dismiss and an August opposition by prosecutors. Van Dyke’s trial is scheduled to begin Dec. 7. Garnett’s ruling on the motions will determine whether the case proceeds.</p>