A U.S. soldier, Gannon Ken Van Dyke, is accused of using classified military intelligence to bet on the removal of Venezuelan President Nicolás Maduro. Van Dyke allegedly profited over $400,000 on the prediction market Polymarket through 13 bets. However, he reportedly failed to pass the Know Your Customer (KYC) verification procedures on Kalshi, a competing platform, before attempting to place similar wagers.
The government's case highlights a key difference in compliance between the two platforms. While Polymarket's international platform, which Van Dyke allegedly accessed using a VPN and posing as a foreign user, has faced scrutiny for not adequately blocking U.S. persons, Kalshi enforced its KYC protocols, preventing Van Dyke from opening an account. This distinction in verification processes is expected to be material to the prosecution. Polymarket stated it identified Van Dyke's conduct and cooperated with authorities, noting its system works.
Questions have been raised about why regulatory bodies like the CFTC and DOJ have not pursued charges against Polymarket for lapses in preventing U.S. access to its international platform, especially as it seeks to operate a domestic U.S. platform. CFTC Chair Mike Selig has emphasized a focus on setting rules for Americans rather than solely pursuing offshore enforcement actions.