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SDNY Court Denies Motion To Dismiss First Prediction Market Insider Trading Prosecution
11/03/2026On October 26, 2026, U.S. District Judge Margaret M. Garnett of the Southern District of New York denied a motion to dismiss the indictment in United States v. Gannon Ken Van Dyke—the first criminal insider trading prosecution arising from prediction market trading. Defendant, an active-duty Army Special Forces Master Sergeant, allegedly used classified information about the U.S. operation to capture Nicolás Maduro to trade on a prediction market, realizing approximately $409,881 in profits. The ruling clears the way for a trial currently scheduled for December 2026, but does not definitively resolve certain of the key arguments raised as to how insider trading laws apply to prediction markets.