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A U.S. special forces soldier was arrested and charged after allegedly using classified information to bet on the operation that led to the capture of Venezuelan President Nicolás Maduro, winning more than $400,000.
Master Sgt. Gannon Ken Van Dyke, stationed at Fort Bragg in North Carolina, is accused of opening an account in late December on Polymarket, a crypto-powered prediction market platform. According to an indictment unsealed Thursday, Van Dyke wagered about $32,000 that Maduro would be "out" by January—a long-shot bet that paid off after Van Dyke participated in the planning and execution of Operation Absolute Resolve, the U.S. military mission to seize Maduro from Caracas on January 3. The operation ended with Maduro’s extradition to New York to face federal charges, which he denies.
Federal prosecutors allege that Van Dyke placed 13 bets between December 27 and January 26, using nonpublic, classified information he gained from his role in the operation. He withdrew most of his winnings the same day as the raid and transferred the money to a foreign cryptocurrency vault before depositing it into an online brokerage account.
The Department of Justice charged Van Dyke with unlawful use of confidential government information for personal gain, commodities fraud, wire fraud, theft of nonpublic government information, and making an unlawful monetary transaction. He faces both criminal and civil charges, with the Commodity Futures Trading Commission (CFTC) seeking restitution and civil monetary penalties. The CFTC stated it aimed to impose "trading and registration bans, and a permanent injunction against further violations" of federal regulations.
Polymarket said in a statement on X that it identified the unusual trading, referred the matter to the Justice Department, and cooperated fully. "Insider trading has no place on Polymarket," the company said.
Acting Attorney General Todd Blanche emphasized the seriousness of the case, stating, "Our men and women in uniform are trusted with classified information in order to accomplish their mission as safely and effectively as possible, and are prohibited from using this highly sensitive information for personal financial gain." U.S. Attorney Jay Clayton said prediction markets "are not a haven for using misappropriated confidential or classified information for personal gain."
President Donald Trump, when asked about the arrest during an unrelated Oval Office event, said he did not know the details but commented, "I don’t like the concept of betting... That’s like Pete Rose betting on his own team. The whole world, unfortunately, has become somewhat of a casino."
Van Dyke’s case will proceed in federal court in North Carolina. No attorney has been listed for him yet, and his next court appearance has not been scheduled. Lawmakers are considering new legislation to further regulate prediction markets and increase penalties for insider trading by government officials.