U.S. Army Special Forces master sergeant Gannon Ken Van Dyke was arrested on Thursday for using classified information to bet on the January capture of Venezuelan President Nicolás Maduro, earning over $400,000 on the Polymarket prediction market.
Van Dyke, 38, placed more than $33,000 in wagers on Polymarket hours before Operation Absolute Resolve, the U.S. Mission that removed Maduro and his wife, Cilia Flores, from power, according to the U.S. Department of Justice.
His bets yielded a profit of more than $400,000, which he attempted to withdraw before trying to delete his account on the platform, prosecutors said.
Van Dyke faces up to 60 years in prison on charges including three counts of violating the Commodity Exchange Act, one count of wire fraud, and one count of unlawful monetary transactions, the Justice Department said.
The case marks the first major insider trading prosecution by U.S. Authorities involving a prediction market, with officials calling it a breach of trust by a service member privy to sensitive military planning.
“He allegedly abused the confidence the U.S. Government placed in him by using classified information about a sensitive military operation to place bets on its timing and outcome for personal gain,” said Jay Clayton, U.S. Attorney for the Southern District of New York.
For more on this story, see FBI Undercover: Hunting U.S. Traitors in Europe.
Polymarket confirmed it identified Van Dyke and referred the case to the DOJ, stating that insider trading has no place on its platform and that the arrest proves its enforcement mechanisms operate.
The platform updated its rules in March to prevent such abuse, though its lack of know-your-customer (KYC) requirements continues to limit enforcement, the company acknowledged.
Van Dyke’s exact role in planning the Maduro arrest remains unclear, though the Justice Department said he was involved in both the planning and execution of the operation.
President Donald Trump compared the case to that of baseball legend Pete Rose, who was banned for life for betting on games involving his own team, saying, “It’s like betting on your own team.”
The Pentagon declined to comment on the matter when contacted by Reuters.
What specific charges is Van Dyke facing?
Van Dyke is charged with three violations of the Commodity Exchange Act, one count of wire fraud, and one count of unlawful monetary transactions, which together carry a maximum sentence of 60 years in prison.
How did Polymarket respond to the arrest?
Polymarket said it identified Van Dyke, referred the case to the DOJ, and stated that the arrest demonstrates its systems work to prevent insider trading, despite acknowledging limitations due to the absence of KYC checks.