A US soldier faces charges after allegedly earning over $400,000 by betting on the ousting of Venezuela’s former leader, Nicolas Maduro, using classified information. Gannon Ken Van Dyke, an active-duty special forces soldier stationed at Fort Bragg, North Carolina, is accused of insider trading on Polymarket, a crypto-powered prediction market platform. The US Department of Justice (DOJ) has charged Van Dyke with multiple offenses related to his actions.
US soldier faces charges for insider trading on Maduro’s removal
Van Dyke was involved in the military operation known as Operation Absolute Resolve, which led to the capture of Maduro and his wife, Cilia Flores, in Caracas. The operation took place in early January, and Maduro was subsequently brought to New York to face allegations of weapons and drug offenses, which he denies.
The DOJ alleges that Van Dyke created a Polymarket account in late December and began placing bets on the timing and outcome of the operation while in possession of classified, nonpublic information. He reportedly wagered more than $33,000 initially and ultimately earned more than $409,000 from these trades.
Legal actions and official responses
- Van Dyke has been charged with unlawful use of confidential government information for personal gain, theft of nonpublic government information, commodities fraud, wire fraud, and making an unlawful monetary transaction.
- The Commodity Futures Trading Commission (CFTC) has also filed a complaint against him for insider trading.
- Polymarket cooperated with the DOJ investigation and stated that insider trading has no place on their platform.
Acting US Attorney General Todd Blanche emphasized that military personnel are trusted with classified information to carry out their missions safely and effectively and are prohibited from using such information for personal financial gain. He noted that federal laws protecting national security information apply fully to prediction markets.
US Attorney Jay Clayton from the Southern District of New York, where the case will proceed, stated that prediction markets are not a refuge for misusing confidential or classified information for personal benefit.
Background and additional remarks
Van Dyke had signed nondisclosure agreements promising never to reveal classified or sensitive information related to military operations. Federal prosecutors allege that from early December until at least early January, Van Dyke was involved in planning and executing Operation Absolute Resolve and had access to sensitive classified information.
When asked about the alleged insider trading, US President Donald Trump said he was not aware of the case but would look into it. He expressed concerns about prediction markets and betting, stating he was “not happy with any of that stuff” and that the world has become “somewhat of a casino” due to such activities.