# Manhattan Court Advances Classified Trading Case

On October 26, a federal court in Manhattan denied Gannon Van Dyke’s motion to dismiss charges alleging that he used classified information to trade event contracts on Polymarket. The allegations include violations of the Commodity Exchange Act and wire fraud; they have not been established at trial. For government contractors, the case highlights potential exposure when employees misuse nonpublic government information, including civil or criminal enforcement, clearance consequences, suspension and debarment risk, and reputational harm.

- Contractors should review insider-trading policies and training to ensure they address nonpublic government information and trading on prediction markets.
- Organizations may consider employee certifications or trade-monitoring controls, as suggested in the signal, to help address risks involving personnel with access to sensitive information.
- The case underscores that alleged individual misconduct can create potential consequences for an employer, making clear internal controls relevant to contractors supporting government missions.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Regulatory Compliance
**Published:** November 03, 2026

### Government Entities
- U.S. District Court in Manhattan
- Department of Justice (DOJ)
- Commodity Futures Trading Commission (CFTC)

### Vendors
- Polymarket ()

### Key Quotes
> There are scenarios where a corporation, a contractor who employs this individual could theoretically face a criminal exposure,
> — Alex Blanchard, Senior Counsel at Holland & Knight LLP

### Sources
- [
        Are prediction markets making it harder to protect government secrets? - Federal News Network](https://federalnewsnetwork.com/workforce/2026/11/are-prediction-markets-making-it-harder-to-protect-government-secrets) - Federal News Network