Stefan Muehlbauer Warns DOJ Indictments End ‘Safe Zone’ as US Army Sergeant Case Expands Risk
Tech Stefan Muehlbauer Warns DOJ Indictments End ‘Safe Zone’ as US Army Sergeant Case Expands RiskThe DOJ charged Army Sgt. Van Dyke for using classified data to net over $400,000 on Polymarket.Stefan Muehlbauer notes that the case subjects decentralized platforms to the Commodity Exchange Act.A June 8, 2026, hearing will clarify legal standards for participants and operators. The End of the ‘Safe Zone’ An expert said recent indictments by the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) signal an end to the “insider trading safe zone” in . Stefan Muehlbauer, head of U.S. government affairs at Certik, argued the case establishes a precedent: Misappropriating nonpublic information — whether military or corporate — now carries the “same legal weight as traditional securities fraud.” Muehlbauers comments came days after the U.S. granted bail to Gannon Ken Van Dyke, who made more than $400,000 in profit by betting on Polymarket that Venezuelan leader Nicolás Maduro would be ousted earlier this year. U.S. authorities assert Van Dyke opened the contract using privileged information in violation of the Commodity Exchange Act, which bars government employees from using nonpublic information in markets under CFTC jurisdiction. As reported by News, Van Dykes lawyer has vowed to challenge the