A U.S. Army sergeant who illegally profited $400,000 on Polymarket had previously been rejected when applying to open an account with Kalshi.

CoinFeed reported on April 25 that, according to Business Insider, U.S. Army Special Forces Sergeant Gannon Van Dyke has been formally indicted for allegedly using classified military intelligence to bet on the arrest of Venezuelan President Maduro on the prediction platform Polymarket, illegally profiting over $400,000. Reports indicate that he had previously attempted to register an account on competing prediction platform Kalshi, but was rejected due to failing identity verification and KYC checks. Polymarket responded that it had proactively reported the suspicious transaction to law enforcement and was fully cooperating with the investigation. This case is the first major criminal case of insider trading in the global prediction market, and has once again sparked widespread discussion within the industry and market regarding the regulatory and risk control loopholes in insider trading on prediction platforms.