CFTC reopens Polymarket probe as soldier's $400K insider betting case tests regulatory reach

The US Commodity Futures Trading Commission has reopened a probe into Polymarket, investigating whether the prediction market honored its 2022 settlement promise to block US traders. Prosecutors allege Master Sgt. Gannon Ken Van Dyke used classified information about a Maduro raid to place 13 bets worth about $33,000 hours before the operation, yielding $409,881 in profit. The case also tests CFTC authority after Van Dyke allegedly used a VPN to mask his location, which Polymarket says violates its rules.