Woofun AI reports that Gannon Ken Van Dyke, a US soldier accused of leveraging nonpublic intelligence for profit on Polymarket, has formally blocked the Commodity Futures Trading Commission (CFTC) from intervening in his criminal defense before the US District Court for the Southern District of New York.

In a Monday filing, Van Dyke's legal team rejected the regulator's request to submit an amicus brief regarding whether event contracts constitute "swaps" under CFTC jurisdiction. Defense attorneys characterized the agency not as a neutral "friend of the Court" but as a "regulatory wolf" and "coursing predator," accusing it of employing "litigation gambits" to advance its interests indirectly rather than pursuing its own case directly.

The underlying charges, filed in April, allege Van Dyke generated over $400,000 by trading contracts on the January removal of Venezuelan President Nicolás Maduro, utilizing classified operational details.

Woofun AI data shows this incident has become a focal point for critics highlighting potential manipulation risks on prediction platforms like Kalshi and Polymarket, serving as a primary example of regulatory friction in the sector.

A federal judge has already stayed the CFTC's parallel civil case, keeping it pending until the criminal proceeding concludes. Van Dyke has pleaded not guilty to all charges, with a trial potentially scheduled for late 2026 or early 2027.